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Crude mixed in Asia as API figures curb output cut enthusiasm

Published 01/24/2017, 09:43 PM
Updated 01/24/2017, 09:46 PM
© Reuters.  Crude mixed in Asia

Investing.com - Crude prices were mixed in Asia on Wednesday as industry data on U.S. inventories put a dampener on recent upbeat sentiment related to global production cuts.

Global benchmark Brent crude rose 0.16% on London's Intercontinental Exchange to $55.29 a barrel, while U.S. crude on the New York Mercantile Exchange fell 0.36% to $52.99 a barrel.

Late on Tuesday figures showed U.S. crude stocks rose 2.9 million barrels at the end of last week, more than expected, according to the American Petroleum Institute (API) released Tuesday showed. API also said gasoline stocks rose 4.8 million barrels and distillate supplies gained 2.0 million barrels with supplies at the Cushing, Oklahoma, oil hub down 100,000 barrels at the end of last week.

Figures from the Energy Information Administration (EIA) report are due at 10:30 a.m. EST on Wednesday. The official EIA figures are expected to show a build of about 2.8 million barrels.

Crude prices have mostly held gains this week on widespread agreement a coordinated pact between OPEC and non-OPEC nations to trim 1.8 million barrels-per-day (bpd) from global output is working as well as dips in the dollar index to seven-week lows that benefit buyers in currencies other than greenbacks. Futures have been trading in a narrow range around the low $50s over the past month as sentiment in oil markets has been torn between expectations of a rebound in U.S. shale production and hopes that oversupply may be curbed by output cuts announced by major global producers.

Still, concerns over the global trade regime weigh on the crude markets for demand prospects after President Donald Trump addressed U.S. manufacturing executives on Monday and repeated a promise to impose a border tax on firms that import products into the United States after moving American factories overseas.

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Trump also said Sunday he would start talks with Mexico and Canada to renegotiate the North American Free Trade Agreement (NAFTA).

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