US oil ends at new 2016 highs on expected supply drop
2016-05-25
U.S. oil rose on Tuesday as investors anticipated a weekly drawdown in U.S. crude inventories that they hoped would boost prices.
"We're gearing up on expectations that the wildfires in Canada may finally be showing up in U.S. crude inventory numbers," said Phil Flynn, analyst at the Price Futures Group in Chicago. "If they show up decisively, it may be what the market needs to test $50." Commercial crude stocks in the United States likely fell by around 2.5 million barrels to 538.8 million in the week ended May 20, a Reuters poll showed.
The American Petroleum Institute (API), a trade group, will issue its own data on U.S. crude stockpiles at 4:30 p.m. EDT (2030 GMT), ahead of official numbers from the U.S. government on Wednesday morning.
