NYMEX crude eases in Asia as API data shows solid build

Investing.com - Crude oil prices dipped early in Asia on Wednesday on bearish industry data on U.S. oil inventories.

The American Petroleum Institute reported that crude stocks rose by 1.9 million barrels last week, and distillates eased by 1 million barrels, while gasoline inventories soared 2.8 million barrels.

Later Wednesday, analysts expect the U.S. Energy Information Administration to report that oil supplies fell by 2.36 million barrels last week, while gasoline stocks rose by 1.78 million barrels and distillate inventories rose by 340,000n barrels.

On the New York Mercantile Exchange, West Texas Intermediate crude oil futures for delivery in February traded at $55.73 a barrel, down 0.81%, after hitting an overnight session low of $53.96 a barrel and off a high of $57.43 a barrel.

Brent crude, a global price gauge, traded down 2.1% at $59.80 a barrel on Tuesday, the lowest settlement since May 2009.

Overnight, oil prices edged higher on Tuesday in choppy trading even after a weak Chinese manufacturing gauge and soft U.S. housing numbers stoked demand fears, as perceptions the commodity may be oversold lifted futures into positive territory.

Concerns that global supply far outstrips demand have battered oil prices during the second half of this year, and data out of China and the U.S. exacerbated those concerns.

The preliminary reading of China’s HSBC manufacturing purchasing managers’ index came in at 49.5, down from a final reading of 50.0 in November and below forecasts of 49.9, which stirred up concerns that demand for fuel and energy in the Asian giant may be cooling.

Meanwhile in the U.S., housing starts fell unexpectedly last month, official data showed on Tuesday.

The Census Bureau reported earlier that the number of housing starts fell to 1.028 million units from 1.045 million in the preceding month whose figure was revised up from 1.009 million.

Analysts had expected the number of housing starts to rise to 1.030 million last month.

Building permits took a similar turn for the worse.

The Census Bureau reported that the number of building permits issued in November fell to 1.035 million from 1.080 million in the preceding month .

Analysts were expecting the number of building permits issued to fall to 1.060 million last month.

On Wednesday, expect markets to move on the Federal Reserve's statement on monetary policy and interest rates.

Elsewhere, the U.S. is to release data on consumer inflation and the current account.