Crude Oil Prices Fall In Asia On API Estimates, Market Awaits EIA Data

Investing.com – Crude oil prices fell in Asia on Wednesday as investors look ahead to see if official weekly data on US weekly inventories will paint a different picture from industry estimates.

On the New York Mercantile Exchange crude futures for March delivery eased 0.08% to $64.42 a barrel, while on London’s Intercontinental Exchange, fell 0.23% to $69.75 a barrel.

US stocks soared by 4.755 million barrels last week, according to estimates by the American Petroleum Institute released on Tuesday, a surprise gain and above expectations of a 1.6 million barrels draw.

Gasoline inventories jumped 4.117 million barrels, while distillate stocks fell 1.280 million barrels, Analysts expected crude oil inventories fell 1.6 million barrels, distillates down 1.471 million barrels and gasoline supplies up by 2.486 million barrels.

On Wednesday, the Energy information Administration will release official figures. The API and EIA figures often diverge.

Overnight, crude oil prices settled higher as investors remained optimistic that major oil producers, part of the ongoing output-cut agreement, would continue to cut output while rising economic growth fuelled expectations for higher oil demand growth.

Energy ministers from Russia and Saudi Arabia Monday signalled support to continue the 1.8 million barrels per day output-cut agreement, which has slashed global oil supplies, moving the oil market closer to rebalancing, stoking a rally in oil prices to multi-year highs.

Also adding support to sentiment on oil prices was an International Monetary Fund (IMF) report, in which the international organisation revised upward its forecast for global economic growth, boosting investor expectations for higher oil demand growth.

US crude production rose by 258,000 barrels per day (bpd) to 9.75 million barrels per day last week, EIA reported last week.

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