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Crude oil prices moved higher on Tuesday, ahead of weekly U.S. crude inventories data.

Gains, however, were just modest, as traders continued to weigh global energy demand prospects amid the surge in coronavirus cases in the U.S. and several other countries.

Data showing a slow recovery of U.S. oil output in the Gulf of Mexico, which faced disruptions due to Hurricane Ida recently, supported oil prices.

West Texas Intermediate Crude oil futures for October settled at $70.56 a barrel on the expiration day, gaining $0.27 or about 0.4% in the session.

WTI crude futures for November, the new front month contract, ended up by $0.35 or about 0.5% at $70.49 a barrel.

Brent crude futures were up $0.60 or 0.8% at $74.52 a little while ago.

According to reports, U.S. oil output in the Gulf of Mexico is recovering slowly. As of Monday, more than 18% of production in the Gulf remained shut in.

Royal Dutch has reportedly said that damage to its transfer facility is unlikely to be repaired until the first quarter of next year.

Meanwhile, traders now look ahead to weekly oil inventory reports from the American Petroleum Institute (API) and U.S. Energy Information Administration (EIA). The API’s report is due later today, while the EIA is scheduled to release its inventory data Wednesday morning.


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