By Kate Gibson and Sarah Turner, MarketWatch
NEW YORK (MarketWatch) — Oil prices climbed Tuesday as investors bet on possible central-bank moves to stimulate growth and ahead of U.S. supply data that could show a decline in crude inventories.
Crude oil for October delivery CLV2 +0.62% rose 58 cents to $97.12 a barrel on the New York Mercantile Exchange.
Crude-oil futures advanced marginally on Monday in New York to settle 12 cents higher at $96.54 a barrel. Read more on Monday's oil-market action.
“The results of this week’s U.S. inventory data and then Thursday’s statement from the [Fed are] high on every oil trader’s list,” said Tim Evans, energy futures specialist at Citi Futures.
The Federal Open Market Committee starts its two-day policy meeting on Wednesday.
While there’s been a shift toward expecting a Fed policy response to a softer U.S. economy, the outcome of the FOMC meeting is still uncertain, said Evans.
“With expectations running high, there is some risk of a sell-the-news reaction, even if the Fed does take action,” he said.
“The same sort of sell-the-news reaction could also exist with regard to the weekly U.S. inventory data,” said Evans.
Citi analysts are expecting a “supportive” decline in crude stocks, but “this may not be enough of a surprise to spark fresh buying,” he said.
Weekly inventory data from the American Petroleum Institute and U.S. Energy Information Administration are due on Tuesday and Wednesday, respectively.
Kate Gibson is a reporter for MarketWatch, based in New York.
Sarah Turner is MarketWatch's bureau chief in Sydney.
