New York, US (BBN) – Crude oil fell in Asia on Tuesday with API estimates ahead to set the tone and the market shrugging off upbeat industrial output figures from China.
On the New York Mercantile Exchange, West Texas Intermediate crude for April fell 0.12 per cent to $48.34 a barrel, reports
On the Intercontinental Exchange, global benchmark Brent for May delivery dipped 0.10 per cent to $51.30 a barrel.
China reported fixed asset investment for January rose 8.9 per cent, beating an 8.2 per cent gain expected year-on-year, industrial production rose 6.3 per cent, higher than the 6.2 per cent increase seen, while retail sales showed a 9.5 per cent gain, missing the expected 10.5 per cent increase.
As well, later on Tuesday, the American Petroleum Institute is slated to give its estimates of US crude and refined product stockpiles.
The figures are followed on Wednesday by official data from the EIA expected to show a 3.2 million barrel gain in crude stocks, while gasoline supplies fell by 1.98 million barrels and distillates declined 1.5 million barrels at the end of last week.
Overnight, US shale oil output was forecast to rise by 109,000 barrels per day (bpd) in April to hit 4.96 million bpd, the US Energy Information Administration’s (EIA) drilling productivity report released on Monday showed.
The figures set the stage for a report by the Organization of the Petroleum Exporting Countries monthly assessment of oil markets.
On Wednesday, the International Energy Agency will release its monthly report on global oil supply and demand.
Crude prices are down more than 8 per cent since last Monday, the biggest week-on-week drop in four months, as evidence grows the supply response to coordinated oil output cuts is more robust than expected.
OPEC and non-OPEC countries made a strong start to lowering their oil output by almost 1.8 million bpd by the end of June, but so far the move has had little impact on inventory levels.
Kuwait is scheduled to host a ministerial meeting on March 26 comprising both OPEC and non-OPEC members to review compliance with the output agreement and to discuss whether cuts would be extended beyond June.