NYMEX crude rebounds in Asia despite uncertain demand outlook

Investing.com - Crude oil rices rebounded in early Asia on Thursday with investors buying off recent sharp dips even as the growth outlook and demand remains uncertain.

On the New York Mercantile Exchange, crude oil for delivery in November traded at $87.77 a barrel, up 0.22%.

Overnight, U.S. oil futures dropped to the lowest level since April 2013 after data showed that U.S. stockpiles rose far more than expected last week.

Brent oil settled down 0.8% at $91.38 a barrel on ICE Futures Europe Wednesday, the lowest settlement price since June 28, 2012.

The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories increased by 5 million barrels in the week ending October 3, compared to expectations for a gain of 1.6 million barrels.

The report also showed that gasoline stockpiles rose by 1.2 million barrels, confounding expectations for a drop of 1.0 million barrels.

After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories increased by 5.1 million barrels in the week ended October 3, more than expectations for a rise of 1.4 million barrels.

The report also showed that gasoline stockpiles increased by 2.5 million barrels, while distillate stocks fell by 1.1 million barrels.

The Federal Reserve's debate on its interest rate guidance heated up last month, with several officials showing concern about misleading investors and pushing for a more data-dependent approach, according to minutes from its last policy meeting.

But as the Fed grapples with how to communicate its view on hiking rates, the minutes also show concern about the rising dollar, slowing inflation, and economic turmoil in Europe and Asia, factors that support the U.S. central bank's current of keeping policy accommodation in place for the near future.

"The concern was raised that the reference to 'considerable time' in the current forward guidance could be misunderstood as a commitment rather than as data dependent," said the minutes of the Fed's Sept. 16-17 meeting, which were released on Wednesday.