Investing.com - Crude prices eased in Asia on Wednesday as industry data on U.S. stockpiles was bearish.
Estimates from the American Petroleum Institute showed a drop of 800,000 barrels last week, short of an expected decline of more than 2 million barrels, while the figures showed supplies at the oil-storage hub at Cushing, Okla. rose by a more than expected 1.4 million barrels.
Separately, Wednesday's government report could show that crude stockpiles fell by 2.3 million barrels for the week, representing the 10th consecutive weekly decline in inventory levels nationwide. Nevertheless, the current stockpile total still remains above the five-year average by approximately 100 million barrels despite the recent drawdown.
On the New York Mercantile Exchange, WTI crude for September delivery eased 0.09% to $42.88. Brent crude eased 0.15% to $45.16 a barrel.
Overnight, U.S. crude futures fell to fresh 3-month lows.
At session-lows, the front month contract for U.S. crude fell to its lowest level since Crude futures have tumbled roughly 18% since hitting 10-month highs in early-June.
Energy analysts continue to express widespread concerns related to the oversupply in crude and refined product, even as inventories retreat from near record-highs.
Analysts also expect gasoline inventories to rise by 675,000 barrels and distillate fuel inventories to tick up by 700,000 on the week. Earlier this month, distillate fuel inventories, which include heating and diesel oil, spiked by 4.1 million barrels for the week ending on July 8, representing the largest weekly build in more than five months.
While consumers continue to spend at the pump at a steady rate, they haven't traveled enough over the key summer driving season to push gasoline inventories dramatically lower. In terms of output, crude production in the U.S. ticked up to 8.494 million barrels per day last week, as oil rigs nationwide continue to creep back online.
Globally, supply levels remain high as Iraq and Libya ramp up exports in the coming weeks. As a result, analysts from Morgan Stanley (NYSE:NYSE:MS) predict that oil could drop as low as $35 a barrel before the end of this year.