Oil futures changed little on Wednesday as investors digested a monthly OPEC report predicting an increase in global demand and a weekly report showing an increase in US inventories.
The American Petroleum Institute reported late Tuesday that U.S. crude stocks rose 1.1 million barrels in the week ending January 10, sources said. API data reportedly showed an inventory increase of 3.2 million barrels of gasoline, while distillate stocks increased by 6.8 million barrels. Inventory data from the Energy Information Administration will be published at 10:30 a.m. Eastern Time.
On Wednesday, the organization of the petroleum exporting countries published a monthly forecast for the global oil market. The oil cartel increased its forecast for global oil demand growth in 2020 by 140,000 barrels to 1.22 million barrels per day and topped its forecast for global economic growth for the coming year to 3.1%.
Above all, the rise in OPEC reflects[s] An improvement in the economic outlook for 2020, ”the report said. Developing countries – especially China and India – are likely to be responsible for most of this growth.
West Texas Intermediate Crude for February delivery
That's down 7 cents, or 0.1%, at $ 58.17 a barrel on the New York Mercantile Exchange, after gaining 0.3% on Tuesday while Brent in March
Lost 14 cents or 0.2% at $ 64.35 a barrel on ICE Futures Europe after a return of 0.5% in the previous session.
WTI, the US benchmark, closed Monday's lowest since December 3, while Brent, the global benchmark, closed its lowest since December 12.
Oil investors have been keeping an eye on the Sino-US trade agreement and signed a phase 1 agreement scheduled for 11:30 p.m. Eastern Time. International trade policy tensions have been one of the greatest headwinds for commodities such as crude oil, where price increases are due to the expectation of healthy economic growth that may lead to increased consumption.
“The oil market is trying to find support along with the lower Bollinger bands and is receiving no help from delivery data from the American Petroleum Institute (API). However, this could be supported by the fact that the market may have to factor in at least some geopolitical risk premium, ”wrote Phil Flynn, senior market analyst at The Price Futures Group. Bollinger Bands measure the volatility of the price of an asset over time and may indicate that prices fall back to the average of a trading range.