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MTECHTIPS:-Crude rallies from Monday’s rout, one day after hitting six-month lows

MTECHTIPS:-Crude rallies from Monday’s rout, one day after hitting six-month lows

Crude futures rebounded slightly from Monday’s massive rout that sent prices crashing to six-month lows, as investors await the release of the American Petroleum Institute’s weekly inventory report for further signals on the widening supply and demand gulf in global energy markets. On the New York Mercantile Exchange, WTI crude for September delivery traded in a tight range between $45.28 and $46.22 a barrel, before settling at $45.75, up 1.27% on the day. One session earlier, Texas Long Sweet futures plunged 4% to close near $45 a barrel – falling to its lowest level since mid-March. It was preceded by a sharp downturn in July when U.S. crude futures crashed by more than 21%, experiencing its worst month in more than six years. On the Intercontinental Exchange (ICE), North Sea brent crude also rallied from Monday’s poor session. Brent crude for September delivery wavered between $49.54 and $50.45 a barrel before closing at $50.00 a barrel, up 0.48 or 0.97%. The spread between the international and U.S. benchmarks stood at $4.25, slightly below Monday’s level of $4.30 at the close. Energy traders on the whole are anticipating a draw in U.S. weekly stockpiles when the API releases its weekly inventory report on Tuesday. Separately, a U.S. government report on Wednesday could show that U.S. crude stockpiles fell by 1.3 million for the week that ended on July 31. Last week, U.S. crude futures surged by more than 1.5% after the Energy Information Administration (EIA) said crude stockpiles nationwide fell by 4.203 million barrels, below expectations for a 1.88 million draw. U.S. crude inventories remain near 460 million barrels, around its highest level in at least 80 years. Any supply draws are viewed as bullish for crude,
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