Oil prices swung lower Tuesday as traders braced for a potential third weekly rise in U.S. crude supplies, giving up earlier gains in the wake of risks to the Iran nuclear deal from U.S. President Donald Trump’s ouster of Secretary of State Rex Tillerson.
April West Texas Intermediate crude CLJ8, -1.08% fell 95 cents, or 1.6%, to trade at $60.41 a barrel on the New York Mercantile Exchange, reversing course after trading earlier at highs near $62.
May Brent crude LCOK8, -0.46% the global oil benchmark, lost 72 cents, or 1.1%, to $64.23 a barrel after losing 0.8% a day earlier on the ICE Futures Europe exchange.
Oil traders looked ahead to a weekly EIA due Wednesday that’s expected to reveal a rise in U.S. crude supplies for a third week in a row. Analysts surveyed by S&P Global Platts expect the EIA to report an increase of 2.5 million barrels in stockpiles.
They also forecast supply declines in gasoline of 1.3 million and 1.4 million for distillates, which include heating oil. Trade group the American Petroleum Institute will release its own petroleum stockpile report late Tuesday.
On Nymex, April gasoline RBJ8, -0.51% shed 1.7% to $1.861 a gallon, while April heating oil HOJ8, +0.27% fell 0.8% to $1.85 a gallon.