Oil futures settled at a two-week low on Tuesday as traders await government supply reports, according to Bloomberg MarketWatch.
October West Texas Intermediate crude slipped by 63 cents, or 1.3%, to settle at $46.35 a barrel on the New York Mercantile Exchange after tapping highs above $47. The settlement was the lowest since mid-August.
On the London ICE Futures Exchange, October Brent crude, the global benchmark, fell 89 cents, or 1.8%, to end trading at $48.37 a barrel.
The expiration of the several futures contracts including the October Brent crude and the New York Mercantile Exchange’s October gasoline and heating oil contracts contributed to the recent market volatility.
A recent report suggested new oil discoveries are at a 70-year low.
“That bodes well for a long-term bullish outlook” on oil, said Phil Flynn, senior market analyst at Price Futures Group.
Traders were also monitoring the development of eyeing a tropical depression in the Gulf of Mexico for any impact on oil and natural gas production in the region. The National Hurricane Center indicated a portion of the Florida Gulf Coast will be subject to a tropical storm watch later this week.
Traders are awaiting the American Petroleum Institute and U.S. Energy Information Administration weekly reports detailing supply and inventory data. Analysts are looking for an increase of 600,000 barrels for crude stockpiles for the week ending August 26. Gasoline inventories are also expected to be down by 1.1 million barrels.
Meanwhile, October natural was down 6.9 cents, or 2.4%, ending trade at $2.827 per million British thermal units on the New York Mercantile Exchange.