Crude oil futures were slightly lower in mid-morning trade in Asia Tuesday on expectations of an uptick in US crude inventory and despite comments that OPEC could further cut production at its next meeting in December. At 10:37 am Singapore time (0237 GMT), ICE January Brent crude futures were down 6 cents/b (0.10%) from Monday’s settle at $62.07/b, while the NYMEX December light sweet crude contract was 8 cents/b (0.14%) lower at $56.46/b.
Weekly US crude inventory data due for release in coming days is expected to show a further 2.7 million-barrel build for the week ending October 25, analysts polled by S&P Global Platts said Monday. That would put stocks roughly on par with the five-year average, based on US Energy Information Administration data. US crude stocks have risen around 23 million barrels since the week ending September 6, according to EIA data. The rise was driven by a decline in crude runs at refineries in the US Midwest and US Gulf Coast.
Preliminary weekly US crude data is due for release by the American Petroleum Institute later Tuesday and more definitive numbers by the EIA on Wednesday. Prices moved slightly lower despite the ongoing optimism on the progress of US-China trade talks and comments on OPEC production cuts. “Chinese government officials said they were considering locations in the US where President Xi would meet President Trump to sign the trade deal,” ANZ analysts wrote in a report Tuesday.