Oil prices rise in anticipation of U.S. supply drop

Oil futures improved from their overnight lows on Tuesday, as traders moved past lackluster economic data from China to focus on supply.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in November traded at $46.02 a barrel at 0356 GMT, up $0.13 in the Globex electronic session.

December Brent crude on London’s ICE Futures exchange rose $0.13 to $48.74 a barrel.

“There’s was a slight overreaction to the weak Chinese data” from Monday, said Daniel Ang, an energy analyst at Phillip Futures. But “the recovery in prices likely means bargain hunting” this morning.

Expectations that supply will continue to drop in the U.S. is providing a support to prices. The U.S. Energy Information Administration releases weekly U.S. inventory and production data on Wednesday.

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