NYMEX crude oil prices dip in Asia despite sharp API drawdown in stocks

Investing.com - Crude oil prices in Asia declined on Wednesday despite a steep drop in U.S. stocks reported in the U.S. overnight by an industry survey.

The American Petroleum Institute showed a 3.3-million-barrel increase in crude stocks last week, a 1.2-million-barrel draw from gasoline supplies and a 1-million-barrel build in distillate inventories.

On Wednesday, analysts expected the U.S. Department of Energy to report a 1.614 million barrel draw in crude stocks, a build of 486,000 barrels in distillates and a drop of 257,000 barrels in gasoline stocks.

On the New York Mercantile Exchange, West Texas Intermediate crude oil for delivery in November traded at $93.66 a barrel, down 0.17%, after hitting an overnight session low of $91.53 a barrel and a high of $94.09 a barrel.

Brent oil rose 1.2% to $99.05 a barrel on ICE Futures Europe Tuesday. Brent, the global benchmark, has slid more than $15 from its high in mid-June as ample global supplies and tepid demand weighed on the market.

Overnight, oil prices shot up in U .S. trading amid reports that global oil cartel OPEC may trim output, while talk of fresh fighting in Libya also boosted prices.

Brent prices have held below $100 a barrel since Sept. 9, and market participants have closely watched OPEC for indications that the group would cut production in response to the weaker prices.

OPEC Secretary General Abdallah El-Badri reportedly said earlier the oil bloc may trim output to boost prices, which sparked a rally in energy markets on talk total production could fall to 29.5 million barrels per day from 30 million when the group meets in November.

Reports that Libya's El Sharara oil field saw output reduced after rockets hit an area near a refinery fueled the rally as well by stoking supply-disruption concerns.

Oil traders awaited the release of fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of demand in the world’s largest oil consumer.