Oil steady as investors assess weaker data, lower US fuel stocks
Oil prices were little changed on Wednesday as investors digested weaker economic data from top oil importers and U.S. inventories pointing to firmer fuel demand, while a stronger U.S. dollar weighed on prices.
Brent crude futures edged higher by 9 cents, or 0.14%, to $64.53 a barrel by 0900 GMT, having touched a near two-week low in the prior session. U.S. West Texas Intermediate crude was also up 9 cents, or 0.15%, at $60.65.
Weaker economic data coupled with a rally in the U.S. dollar prevented oil from making significant gains, while prices found support from refined products amid lower U.S. stocks, PVM analyst Tamas Varga said.
China's factory activity shrank for a seventh month in October, while U.S. manufacturing contracted for an eighth straight month in October.
The U.S. dollar index - which measures the currency against the euro, sterling and other peers - was at a three-month high, buoyed by division among the Federal Reserve board, indicating low odds for an interest rate cut in December.
A stronger greenback makes dollar-denominated oil more expensive for holders of other currencies, which can impact demand. A U.S. interest rate cut typically boosts demand.
Investors also assessed U.S. data, as crude stocks rose while gasoline and distillate inventories fell in the week ended October 31, sources said, citing the American Petroleum Institute figures on Tuesday.
Supply-side concerns continued to weigh on prices. The Organization of Petroleum Exporting Countries and allied producers, known as OPEC+, agreed on Sunday to increase output by 137,000 barrels per day in December. The group decided to pause further increases in the first quarter of 2026.
Western sanctions on Russia and Iran are creating record volumes of oil kept in floating storage, preventing a supply glut from forming in global markets, the CEO of Swiss-based commodities trader Gunvor Group said on Wednesday.
Source : Reuters.com
