NYMEX crude weaker in early Asia on bearish API data

Investing.com - Crude oil prices eased mildly in early Asia on Wednesday as U.S. industry stocks data painted a bearish picture ahead of more closely watched government data.

Data from the industry group, the American Petroleum Institute released late Tuesday, showed that crude supplies rose by 3.7 million barrels last week, while gasoline inventories rose by 519,000 barrels and distillate stocks fell by 3.3 million barrels, according to industry sources.

Meanwhile, 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 with a government report due Wednesday expected to show crude stockpiles fell by 1.2 million barrels in the week ended Nov. 14.

In the New York Mercantile Exchange, West Texas Intermediate crude oil futures for delivery in January traded at $74.26 a barrel down 0.03%, after hitting an overnight session low of $74.30 a barrel and off a high of $76.43 a barrel.

Brent, the global benchmark, fell 1.1% to $78.47 a barrel on ICE Futures Europe on Tuesday.

Overnight, crude futures moved lower on Tuesday as markets bet that the OPEC oil cartel will leave output unchanged at an upcoming meeting despite months of steady losses due to ongoing supply concerns.

Concerns over weakening global demand combined with indications that OPEC producers will not cut output have weighed on prices in recent months and continued to do so on Tuesday.

Oil ministers from Iran, Libya, Venezuela, Ecuador and Algeria have asked for action to prevent further price declines, while Saudi Arabia and Kuwait have resisted calls to lower production.

Markets are speculating that a Saudi-backed willingness to let prices slide will prompt U.S. shale producers to halt operations as a result, as such production costs more than traditional drilling.

Once U.S. shale producers table their operations for profitability reason, prices would presumably rise as the global economy absorbs excess supply.

The 12-member oil cartel is scheduled to meet in Vienna on Nov. 27 to discuss whether to adjust their production target for 2015.