Oil falls from 12-week high as report shows US stockpile build
OIL retreated from its highest close in almost three months after an industry report showed American crude inventories expanded last week, adding to concerns over weakening demand.
Futures in New York dropped as much as 0.6 percent after climbing 0.4 percent on Tuesday. The American Petroleum Institute reported US stockpiles grew by 1.41 million barrels, according to people familiar with the data. Chinese officials expect the US to delay a tariff increase scheduled for Sunday, giving more time to negotiate an interim trade deal, people with familiar with the discussions said.
Crude has been hovering around the highest levels since mid-September after the Organization of the Petroleum Exporting Countries and its allies surprised the market on Friday by announcing deeper-than-forecast production cuts for next year. While there’s optimism a limited trade deal is close, there’s still a lot of uncertainty. White House Trade Adviser Peter Navarro told Fox Business
Network that there’s no indication that President Donald J. Trump has made a decision either on a deal or on the tariff hike. “On top of data that suggests an inventory build in the US, the December 15 deadline for the imposition of new US tariffs on Chinese goods is rapidly approaching,” said Stephen Innes, chief Asia market strategist at AxiTrader Ltd. “Although there are indications that both sides are looking for a resolution, concerns will linger until that is finally announced.”
West Texas Intermediate for
January delivery fell 33 cents, or 0.6 percent, to $58.91 a barrel on the New York Mercantile Exchange as of 11:25 a.m. in Singapore. The contract finished up 22 cents at $59.24 on Tuesday, the highest close since September 17.
Brent for February settlement dropped 0.7 percent to $63.89 a barrel on the London-based ICE Futures Europe Exchange. The global benchmark crude traded at a $5.08 premium to WTI for the same month.
If the API figures are confirmed by official Energy Information Ad