Crude oil futures edged lower in mid-morning trade in Asia Wednesday amid expectations of weaker global demand and a build in US inventories. At 10:32 am Singapore time (0232GMT), ICE December Brent crude futures were 16 cents/b lower than the previous settle at $61.43/b, while the NYMEX December light sweet crude contract was down 28 cents/b at $55.26/b. “A combination of concerns over continuously rising US inventories and the weak demand outlook remains the drag for crude oil prices going into Wednesday,” IG market strategist Pan Jingyi said.

The International Energy Agency Tuesday cut its headline oil demand growth number by 0.1 million b/d for both 2019 and 2020 in its latest Oil Market Report.Analysts surveyed by S&P Global Platts Monday were expecting weekly US stocks data due for release later Wednesday to show a build of 2.5 million barrels, putting US crude inventories at 435.65 million barrels, roughly level with the five-year average.

“While the lightening up of US-China trade tensions had been aided by the recovery in crude oil prices in October, it might take more concerted efforts from OPEC and co. to give crude oil prices a substantial boost,” Pan added. Aside from the weekly US Energy Information Administration data due for release later Wednesday, the market remains watchful of the next OPEC+ group meeting slated for December. Russia’s energy ministry said earlier the OPEC+ group meeting in December would take into account the recent slowing in US oil output growth after production hit a record high of more than 12 million b/d.

US production, currently at 12.6 million b/d, continues to grow, although at a slower pace than earlier in the year, Platts reported previously.