Crude futures settled lower Tuesday after US President Donald Trump said he fired National Security Advisor John Bolton, opening the possibility that sanctions on Iran might be eased.
NYMEX front-month crude settled 45 cents lower at $57.40/b, while ICE front-month Brent settled 21 cents lower at $62.38/b.
Also bearish for crude was news that the US Energy Information Administration cut its outlook for 2019 global oil demand growth by 100,000 b/d to 890,000 b/d, putting it below 1 million b/d for the first time since 2011. The EIA release coincided with Trump's announcement.
However, the fall in crude was short-lived, as prices climbed after the settle when the American Petroleum Institute reported a larger-than-expected 7.3 million barrel draw in US crude inventories. The market will likely look for confirmation in the EIA's weekly data due out Wednesday.
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