US oil price gains as traders buy dip

New York, Dec 16 (IANS) Oil prices continued to rise on Tuesday as traders started to buy after sharp decline of last week.

The US energy Information Administration (EIA) will release the inventories data of last week on Wednesday. Traders expected the stockpiles to decrease by 0.5 million barrels, Xinhua reported.

Oil prices plunged last week since the Organisation of the Petroleum Exporting Countries (OPEC) on December 4 decided to keep crude production pumping at current level in the already over-supplied market.

The cartel’s output is accounted for around 40 percent of the global crude output. In November, OPEC production rose by 230,000 barrels per day from the previous month to average 31.70 million barrels per day, according to OPEC monthly oil market report released on Thursday.

The West Texas Intermediate for January delivery moved up $1.04 to settle at $37.35 a barrel on the New York Mercantile Exchange.

Brent crude for January delivery increased 53 cents to close at $38.45 a barrel on the London ICE Futures Exchange.

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