Oil steady as weaker economy data eclipses U.S. stockpile drop

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Weak economic data from Germany raised concerns about a slowdown in global fuel demand, trading around $ 56 a barrel for New York crude oil, and eased the sharp decline in US crude oil inventories.

Signaling that the German manufacturing and service measurements of IHS Markit will last until the fourth quarter, the initial loss of futures regained 1{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5} of initial losses as shares strengthened with positive corporate performance, but still offset by economic concerns. . The biggest rally surged 2.7 percent on Wednesday since the Saudi Arabian energy facility was attacked in mid-September.

Oil plunged 16{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5} from its peak in April as global demand surged due to long-term trade disputes between Beijing and Washington. As a result, the Organization for Petroleum Exporting Countries and its partners are pressing in December to further reduce production. However, Russian energy minister Alexander Novak said on Wednesday that none of the OPEC + members had submitted an offer to change existing trading terms.


Norbert Ruecker, head of economics at Julius Baer Group Ltd. in Zurich, said, "The soft economy remains the top priority, and supply seems sufficient for some time."

Previous: Oil rose after US crude oil stocks fell sharply

West Texas Intermediate for December delivery was 2 cents lower at $ 55.95 per barrel on the New York Mercantile Exchange as of 8:01 am local time. The deal added $ 1.49 to close at $ 55.97 on Wednesday, the biggest gain since September 16.

Brent oil for a compromise in December was $ 61.22, up 5 cents per barrel on the London-based ICE futures exchange. The contract added $ 1.47 to $ 61.17 on Wednesday. World benchmark crude oil was traded at $ 5.27 premium to WTI.

Except for strategic oil reserves, US total inventory of crude oil and petroleum products, excluding strategic oil reserves, dropped to 9-million barrels last week, the lowest since May, according to the Energy Intelligence Agency released Wednesday. Gasoline inventories have declined for four weeks seasonally as demand for automobile fuels has peaked since 1991. Foreign oil imports have fallen to their lowest level for more than 20 years.

Demand is still continuing in Asia, the largest consumer center for oil. Last week, China reported the lowest economic growth since the early 1990s, while the Korean economy grew slowly in the third quarter.


© 2019 Bloomberg L.P.

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