Oil prices surged on Tuesday as government data continued to suggest another drop in crude inventories following Saudi Arabia and Nigeria’s pledge to OPEC limiting output, according to Bloomberg MarketWatch.
On the New York Mercantile Exchange, September West Texas Intermediate crude rallied by $1.55, or 3.3%, to settle at $47.89 a barrel.
On the London ICE Futures Exchange, September Brent crude, the global benchmark, added $1.60, or 3.3%, to end trading at $50.20.
Meanwhile, traders are also looking ahead to a weekly report that is expected to reveal a fourth-straight weekly decline in U.S. crude inventories. Analysts polled by S&P Global Platts expect the Energy Information Administration to report a decline of 2.5 million barrels for crude stockpiles in the week ending July 21.
Late Tuesday, the American Petroleum Institute reported a colossal 10.2 million-barrel decline in last week’s domestic crude stockpiles, according to sources.
Back on the New York Mercantile Exchange, August natural gas settled at $2.944 per million British thermal units, up 4.5 cents, or 1.6%.