Crude Steady Above $85

(RTTNews) - The price of crude oil was steady above $85 Tuesday morning as traders took positive cues from a rebound in global equity markets.

Light Sweet Crude Oil (WTI) futures for October delivery, the new front month contract, gained $1.12 to $85.54 a barrel. Yesterday, oil rose nearly 3 percent to settle near $85 amid a recovery in global stocks.
China's apparent oil demand increased 6.9 percent year on year in July to an average of 9.05 mbd as oil consumption appears to be recovering after scheduled maintenance at refineries, according to Platts' analysis. Chinese refineries processed an average of 8.86 mbd of crude oil in July, up from June's processing rate of 8.69 mbd.


Separately, China's flash Purchasing Managers' Index edged up to 49.8 in August, from July's final reading of 49.3. This morning, the U.S. dollar continued to pare recent gains versus the euro and sterling, while ticking lower against the Swiss franc. The buck was drifting lower versus the yen.

Traders will look to the new home sales report from the U.S. Commerce Department due out later during the session, Economists expect the sales to edge up to 316,000 from 312,000 reported for June.Today after the market hours, the API will release its report on U.S. crude oil inventories for the week ended August 19.

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