Oil prices mixed ahead of U.S. crude stocks data

Oil prices were mixed on Wednesday as Brent crude extended losses partly in response to weak global stock markets.
02 Oct, 2019
  • Oil prices were mixed on Wednesday as Brent crude extended losses partly in response to weak global stock markets.
  • Brent crude futures, an international benchmark for oil prices, were down 24 cents at $58.65 a barrel by 0932 GMT. U.S.

Brent crude futures, an international benchmark for oil prices, were down 24 cents at $58.65 a barrel by 0932 GMT. U.S.

West Texas Intermediate (WTI) crude futures rose 6 cents to $53.68 a barrel.

Front-month WTI prices settled down for a sixth straight session on Tuesday, their longest losing streak this year, after U.S. manufacturing activity dropped to a 10-year low as U.S.-China trade tensions weighed on exports.

But prices found some support from American Petroleum Institute (API) data which showed U.S. crude stocks fell last week by 5.9 million barrels, against expectations for an increase of 1.6 million barrels.

"It seems to be a fight between two opposing forces; On the bullish side another draw in U.S. inventories, on the bearish side concerns on weaker economic data, and currently ebbing tensions in the oil market," said Giovanni Staunovo, an oil analyst at UBS.

"I still hold a constructive outlook short-term," he added.

The Energy Information Administration's weekly oil inventories report is due at 1030 EDT (1430 GMT) on Wednesday.

"Even if the EIA were to confirm the API crude oil number this afternoon, the momentum off a single number can easily fade as the economy is front and centre for global markets right now," said Harry Tchilinguirian, global oil strategist at BNP Paribas.

Iran's Oil Minister Bijan Zanganeh said he expected a slight surplus on the oil supply side next year.

Russian Energy Minister Alexander Novak said in an article in Energy Policy magazine that global oil demand is expected to rise by 1.4 million barrels per day (bpd) next year after growing at a rate of one million bpd in 2019.

Novak also said that output caps in place as part of the global oil production deal between OPEC and its allies were temporary and Russia would only undertake such cuts when they were in the national interest.

Meanwhile, Ecuador, one of the smallest members of the Organization of the Petroleum Exporting Countries, said it would leave the 14-nation bloc from Jan. 1 due to fiscal problems.

Ecuador will be the second country to withdraw from OPEC in the last year after the departure of Qatar.

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