Crude up about 2 percent as U.S. oil products jump; eyes on Iran

Tue Jun 23, 2015 5:18pm EDT
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By Barani Krishnan

NEW YORK (Reuters) - Crude futures rallied around 2 percent on Tuesday, latching onto a rebound in oil products ahead of U.S. inventory data expected to show more crude draws and gasoline demand.

Also supporting prices were signs of trouble with an impending Iranian nuclear deal that could delay Tehran's hopes of lifting Western sanctions on its oil exports.

A strong dollar, which usually pressures commodity prices, did little to temper the rally. [FRX/]

Brent crude futures settled up $1.11, or 1.8 percent, at $64.45 a barrel.

U.S. crude futures settled at $61.01, up 63 cents, or 1 percent.

Industry group American Petroleum Institute (API) said after the market's close that U.S. crude stockpiles were estimated to have fallen by 3.2 million barrels last week for an eighth consecutive week of declines.

The estimate came in higher than the draw of 2.1 million forecast by analysts in a Reuters poll on Tuesday. The U.S. Energy Information Administration will release official stockpiles data on Wednesday. [EIA/S]

Futures of oil products such as gasoline and ultralow sulfur diesel (ULSD) gained more than crude, leading Tuesday's rally.   Continued...

A petro-industrial factory is reflected in a traffic mirror in Kawasaki near Tokyo December 18, 2014. REUTERS/Thomas Peter/Files