Oil prices ended nearly 1% higher today as a softer dollar and stronger U.S. equity markets helped crude futures rebound from an early drop pressured by worries about increased drilling activity for oil in the United States.
As Reuters reports, forecasts that U.S. shale oil production could fall for an 11th straight month in October also supported oil prices, although gains were capped by expectations that U.S. stockpiles may have built again last week after a sharp drawdown the previous week.
While some oil traders bet on more near-term gains, others were positioning to sell ahead of bearish U.S. government oil inventory data on Wednesday.
Analysts polled by Reuters forecast a 4.5 million-barrel build in U.S. crude stockpiles for the last week, after an unexpected 14.5 million-barrel slump the previous week, the biggest drop since 1999.
