Crude oil futures were lower during mid-morning trade in Asia Thursday amid a bearish report on last week’s US crude inventory, while ongoing global growth concerns continued to provide downside pressure to prices. At 10:48 am in Singapore (0248 GMT), ICE Brent December futures were down 38 cents/b (0.64%) from Wedneday’s settle at $59.04/b, while the NYMEX November light sweet crude futures contract was 42 cents/b (0.79%) lower at $52.94/b. According to analyst reports, quoting data released by the American Petroleum Institute on Wednesday, US crude inventory for the week ended October 11 rose 10 million barrels.
The API report, was delayed by one day this week as a result of Monday’s Columbus Day holiday. Analysts surveyed Tuesday by S&P Global Platts on the other hand were looking for a smaller build in US crude stocks by 4 million barrels for the same period. More definitive data on last week’s US crude and product inventory level is due for release from the US Energy Information Administration later Thursday.
Meanwhile, trade related and geopolitical risks continue to dominate in setting the direction for crude prices, analysts said. “Lost in all of the macro-economic fear trade is the fact that geo-political risk remains high,” Price Futures Group senior market analyst Phil Flynn said. The US and China greed to a partial trade deal last week, which includes purchases of about $40 billion-$50 billion worth of American agricultural products by China. “On the trade front, there were mixed messages. Doubt emerged as to whether China could physically purchase as much agriculture products as suggested by the US,” ANZ analysts said in a note Thursday.
“President Trump also said that the phase one deal probably won’t be signed until a meeting with President Xi at the November APEC summit in Chile,” they added. As of 0248 GMT, the US Dollar Index was down0.01% at 97.715.