Oil prices were higher in European trade on Tuesday, extending their recovery from last week’s ten-month lows, but futures stayed volatile in the face of fresh supply worries amid indications that U.S. shale production will continue to rise.
The U.S. West Texas Intermediate crude August contract was at $43.72 a barrel by 3:25AM ET (0725GMT), up 35 cents, or around 0.8%. It touched its lowest since August 11 at $42.05 on Wednesday last week.
Elsewhere, Brent oil for September delivery on the ICE Futures Exchange in London tacked on 39 cents to $46.43 a barrel, after hitting $44.35 last Wednesday, a level not seen since November 14.
Oil settled higher Monday, tallying their third straight session of gains, despite ongoing pressure from expectations of further growth in U.S. output.
U.S. drillers last week added rigs for the 23rd week in a row, according to data from energy services company Baker Hughes, implying that further gains in domestic production are ahead.
The increase in U.S. drilling activity and shale production has mostly offset efforts by OPEC and other producers to cut output in a move to prop up the market.
In May, OPEC and some non-OPEC producers extended a deal to cut 1.8 million barrels per day in supply until March 2018.
Investors looked ahead to weekly data from the U.S. on stockpiles of crude and refined products.
Industry group the American Petroleum Institute is due to release its weekly report at 4:30PM ET (2030GMT) later on Tuesday. Official data from the Energy Information Administration will be released Wednesday, amid forecasts for an oil-stock drop of around 2.2 million barrels.
Elsewhere on Nymex, gasoline futures for August inched up 0.1 cents to $1.435 a gallon, while August heating oil gained 0.9 cents to $1.395 a gallon.
Natural gas futures for August delivery rallied 2.6 cents to $3.075 per million British thermal units.
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