Oil dips on rising U.S. crude inventories, dimming economic outlook
“Oil prices ... fell after the API inventory data showed an unexpected crude build last week”, said William O’Loughlin, investment analyst at Australia’s Rivkin Securities.
Official U.S. fuel inventory data is due to be published later on Wednesday by the Energy Information Administration.
Sentiment was also clouded by a darkening economic outlook which could start impacting oil demand, traders said.
The OECD’s composite leading indicator, which covers the western advanced economies plus China, India, Russia, Brazil, Indonesia and South Africa, peaked in January but has since fallen and slipped below trend in May and June.
World trade volume growth also peaked in January at almost 5.7 percent year-on-year, but nearly halved to less than 3 percent by May, according to the Netherlands Bureau for Economic Policy Analysis, inform Reuters.
BMI Research said oil markets would “struggle for direction, as uncertainty around both the impact on supply from the Iranian sanctions and escalating trade tensions between the U.S. and China persists”.