home Uncategorized Crude oil hovers above $50 on signs supply is tightening

Crude oil hovers above $50 on signs supply is tightening

Oil futures traded modestly lower on Tuesday, threatening to halt a string of gains at five, as traders paused following a brisk run-up above $50 a barrel by the U.S. benchmark fed by encouraging signs that efforts to tamp down output are taking hold.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in September CLU7, -0.60%  fell 33 cents, or 0.6%, to $49.86 a barrel on Tuesday, while October Brent crude LCOU7, +2.19%  retreated by 43 cents, or 0.8%, to $52.29 a barrel. Both contracts had been trading slightly higher earlier on the day.

Matt Smith, director of commodity research at ClipperData said that although a number of factors continue to be supportive to higher crude prices, recent reports showing production increases are providing a slight headwind in recent trade.

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