Oil prices surged Tuesday as market expected U.S. refiners to consume more crude after maintenance season.
U.S. refiners typically slow production during September and October to perform maintenance during a low fuel demand period. Analysts predicted that refineries are starting to boost operating rates. The U.S. energy Information Administration (EIA) will release the U.S. crude data of last week Wednesday.
Traders expected U.S. stockpiles to gain for about 2.25 million barrels. They also expected to see U.S. crude output contracting in the EIA report, as U.S. oil companies continued to cut the expense in face of the low oil prices.
Data from oil service company Baker Hughes released Friday showed that the number of active U.S. oil-drilling rigs lost 16 to 578 of last week. The West Texas Intermediate for December delivery moved up 1.76 U.S. dollars to settle at 47.9 dollars a barrel on the New York Mercantile Exchange, while Brent crude for December delivery increased 1.75 dollars to close at 50.54 dollars a barrel on the London ICE Futures Exchange.
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