U.S. crude oil rose by nearly $1 per barrel on Tuesday, reversing the previous session’s losses, as traders expected data to show oil inventories were beginning to drain in earnest from the benchmark’s delivery point at Cushing, Oklahoma, after the start-up of TransCanada’s Keystone south pipeline.
Gains were capped later in the afternoon as traders took some profit. The double whammy of poor factory data in China and the United State, the world’s two largest oil consumers, continued to weigh on the market.
U.S. crude was up 76 cents to settle at $97.19, bouncing after their largest daily percentage loss in nearly a month on Monday as they tumbled with U.S. equities. The contract traded at a session high of $97.71 earlier in the day. March Brent crude was mired near two week lows under $106 a barrel, in a third straight session of losses.
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