NYMEX crude oil weaker in Asia as API data shows large U.S. stocks build

Investing.com - Crude oil prices dropped in Asia on Wednesday with downbeat U.S. supply data weighing on sentiment.

The American Petroleum Institute said late Tuesday that crude oil stocks surged 12.7 million barrels last week, distillate stocks fell 670,000 barrels and gasoline stocks eased 5 million barrels.

The market will now look ahead to similiar data, but more closely watched, from the U.S. Department of Energy later Wednesday.

On the New York Mercantile Exchange, crude oil for delivery in March crude was quoted at $45.50 a barrel, down 0.51%.

Overnight, West Texas Intermediate oil futures inched higher on Tuesday, as investors digested a mixed bag of U.S. economic data.

On the New York Mercantile Exchange, crude oil for delivery in March tacked on 28 cents, or 0.62%, to trade at $45.43 a barrel during U.S. morning hours. Prices held in a range between $44.82 and $45.69.

A day earlier, New York-traded oil futures hit a low of $44.35 a barrel, a level not seen since March 2009, before settling at $45.15, down 44 cents, or 0.97%.

The U.S. Commerce Department said new home sales climbed by 11.6% to a seasonally adjusted 481,000 units last month, above expectations for 450,000.

At the same time, the Conference Board said its index of consumer confidence improved to 102.9 this month, the highest level since August 2007, and up from 93.1 in December. Analysts expected the index to increase to 95.1 in January.

Earlier in the day, the U.S. Commerce Department said that total durable goods orders, which include transportation items, fell by 3.4% last month, compared to expectations for a gain of 0.5%.

Core durable goods orders, excluding volatile transportation items, declined by 0.8% in December, disappointing forecasts for a 0.6% gain.

Market participants now looked ahead to 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.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for March delivery picked up 17 cents, or 0.34%, to trade at $48.33 a barrel. On Monday, Brent for March delivery lost 63 cents, or 1.29%, to close at $48.16 on Tuesday.

Oil prices have fallen nearly 60% since June as the Organization of Petroleum Exporting Countries resisted calls to cut output, while the U.S. pumped at the fastest pace in more than three decades, creating a glut in global supplies.

Market players are looking ahead to the Federal Reserve's two-day policy meeting later in the day, for further clarification on when interest rates might start to rise.