NYMEX crude dips in Asia as investors weigh demand prospects post-Fed

Investing.com - Crude oil prices dipped in Asia on Thursday as markets digested the Federal Reserve rate outlook and prospects for demand growth as global supplies are ample.

In the New York Mercantile Exchange, West Texas Intermediate crude oil futures for delivery in February traded at $56.64 a barrel, down 0.26%, after hitting an overnight session low of $54.61 a barrel and off a high of $59.15 a barrel.

Brent, the global benchmark, settled up $1.17, or 1.9%, at $61.18 a barrel on ICE Futures Europe on Wednesday.

Overnight, oil prices rose on Wednesday after data revealed that U.S. inventories fell last week, which alleviated concerns of a supply glut.

The U.S. Energy Information Administration said in its weekly report earlier that U.S. crude oil inventories fell by 0.847 million barrels in the week ending Dec, 12, and while short of expectations for a decline of 2.36 million barrels, the draw sent prices rising by stoking perceptions that the commodity is oversold.

Total U.S. crude oil inventories stood at 379.9 million barrels as of last week.

The report also showed that total motor gasoline inventories rose by 5.25 million barrels, well above expectations for a gain of 1.78 million, while distillate stockpiles fell by 0.207 million barrels.

Still, oil prices shot up as investors viewed Tuesday's American Petroleum Institute report revealing an unexpected 1.9 million barrel increase in U.S. oil stockpiles as an anomaly.

Oil prices have almost halved since June, pressured lower by concerns that global demand remains soft despite an improving U.S. economy while supply remains ample.

Last Friday the International Energy Agency cut its global oil demand forecast for next year by 230,000 barrels a day to 900,000 barrels, following similar cuts by OPEC and the U.S. Energy Information Administration.