Oil prices muted after mixed US inventory data; more demand cues awaited

Investing.com– Oil prices drifted lower in Asian trade on Thursday following middling industry data on U.S. inventories, while markets sought more cues on demand from China and the International Energy Agency.

Prices rebounded slightly on Wednesday, but were nursing losses this week after the OPEC trimmed its demand forecast for a fourth consecutive month. Fiscal measures from top oil importer China also largely underwhelmed.

Brent oil futures expiring in January fell 0.1% to $72.23 a barrel, while West Texas Intermediate crude futures fell 0.1% to $68.17 a barrel by 20:21 ET (01:21 GMT).

US oil inventories shrink, but product stocks rise- API 

Data from the American Petroleum Institute showed on Wednesday that U.S. oil inventories shrank by about 777,000 barrels in the week to November 8, compared to expectations for a build of 1 million barrels and a build of 3.1 mb in the prior week.

But the data also showed gasoline stockpiles up by 312,000 barrels, while distillate inventories grew 1.1 mb.

The build in product inventories spurred some concerns that U.S. fuel demand may be cooling, especially as the winter season approaches. 

The API data usually heralds a similar reading from official inventory data, which is due later on Thursday. The release of the data was delayed by a day this week, on account of a U.S. holiday on Monday. 

Oil prices were dented by easing fears of U.S. supply disruptions, as tropical storm Rafael largely petered out before causing any major disruptions in the Gulf of Mexico.

Uncertainty over what a second Donald Trump presidency will entail for crude also weighed on oil markets, given that the president-elect has vowed to increase U.S. oil production and impose trade tariffs on top oil importer China. 

The dollar rallied to a one-year high after Trump’s election victory last week, pressuring crude prices. 

IEA demand outlook, China stimulus in focus 

Focus now turned to an upcoming monthly report from the IEA, which is due later on Thursday.

The report comes after the OPEC cut its 2024 demand growth forecast for a fourth consecutive month earlier this week, citing persistent concerns over cooling Chinese demand. 

The IEA has also steadily trimmed its demand outlook this year, and holds a much more negative stance on demand growth than the OPEC. 

China has been a main point of contention for oil markets, as the country grapples with slowing growth and as recent stimulus measures largely underwhelmed. A Trump presidency is also expected to herald more economic pressure on the country.

This post is originally published on INVESTING.

  • Related Posts

    Dollar retains strength against peers on Trump trade

    By Kevin Buckland and Alun John TOKYO/LONDON (Reuters) -The U.S. dollar continued its relentless march higher on Thursday, trading at a one-year high against major peers and headed for a…

    Oil settles slightly higher, investors focus on steep draw in fuel stocks

    By Arathy Somasekhar HOUSTON (Reuters) -Oil prices closed slightly higher in choppy trading on Thursday, as a steep draw in U.S. fuel stocks outweighed oversupply concerns and demand worries stemming…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    Dollar retains strength against peers on Trump trade

    • November 14, 2024
    Dollar retains strength against peers on Trump trade

    Oil settles slightly higher, investors focus on steep draw in fuel stocks

    • November 14, 2024
    Oil settles slightly higher, investors focus on steep draw in fuel stocks

    Oil dips on bigger-than-expected US crude stockbuild, oversupply concerns

    • November 14, 2024
    Oil dips on bigger-than-expected US crude stockbuild, oversupply concerns

    Trump’s transition team aims to kill Biden EV tax credit

    • November 14, 2024
    Trump’s transition team aims to kill Biden EV tax credit

    Exclusive-Trump’s transition team aims to kill Biden EV tax credit

    • November 14, 2024
    Exclusive-Trump’s transition team aims to kill Biden EV tax credit

    Why Minimalist Forex Trading Is the Smart Trader’s Secret?

    • November 14, 2024
    Why Minimalist Forex Trading Is the Smart Trader’s Secret?