U. S. crude futures rose in line with expectation of recovery in financial market and National Hurricane Centers forecasts also kept energy traders active as in 48 hours tropical storm may form which may support crude oil prices.

IN FOCUS:

 Kuwait has lowered the official selling price (OSP) for its crude oil sales to Asian buyers for September by $1.50 a barrel to $1.50 a barrel below the average of Oman/Dubai quotes, a trader said.

The API data showed that U. S. crude stocks fell by 1.4 million barrels, against forecasts for a 700,000 barrel build. The U. S. Energy Information Administration will release its report on inventory today.

Mexico expects its basket of crude oil exports, a key source of government revenue, to fetch around $53 per barrel in 2010, Finance Minister Agustin Carstens said on Tuesday.

The U. S. National Hurricane Center said the depression formed over the far eastern Atlantic and may form into tropical storm in 48 hours

FUNDAMENTAL OUTLOOK:

Crude oil may trend sideways to up during the day and we recommend buying crude oil at dips during the day.