Investing.com– Oil prices drifted lower in Asian trade on Thursday following middling industry data on U.S. inventories, while markets sought more cues on demand from China and the International Energy Agency.
Prices rebounded slightly on Wednesday, but were nursing losses this week after the OPEC trimmed its demand forecast for a fourth consecutive month. Fiscal measures from top oil importer China also largely underwhelmed.
expiring in January fell 0.1% to $72.23 a barrel, while fell 0.1% to $68.17 a barrel by 20:21 ET (01:21 GMT).
US oil inventories shrink, but product stocks rise- API
Data from the showed on Wednesday that U.S. oil inventories shrank by about 777,000 barrels in the week to November 8, compared to expectations for a build of 1 million barrels and a build of 3.1 mb in the prior week.
But the data also showed gasoline stockpiles up by 312,000 barrels, while distillate inventories grew 1.1 mb.
The build in product inventories spurred some concerns that U.S. fuel demand may be cooling, especially as the winter season approaches.
The API data usually heralds a similar reading from , which is due later on Thursday. The release of the data was delayed by a day this week, on account of a U.S. holiday on Monday.
Oil prices were dented by easing fears of U.S. supply disruptions, as tropical storm Rafael largely petered out before causing any major disruptions in the Gulf of Mexico.
Uncertainty over what a second Donald Trump presidency will entail for crude also weighed on oil markets, given that the president-elect has vowed to increase U.S. oil production and impose trade tariffs on top oil importer China.
The rallied to a one-year high after Trump’s election victory last week, pressuring crude prices.
IEA demand outlook, China stimulus in focus
Focus now turned to an upcoming from the IEA, which is due later on Thursday.
The report comes after the OPEC cut its 2024 demand growth forecast for a fourth consecutive month earlier this week, citing persistent concerns over cooling Chinese demand.
The IEA has also steadily trimmed its demand outlook this year, and holds a much more negative stance on demand growth than the OPEC.
China has been a main point of contention for oil markets, as the country grapples with slowing growth and as recent stimulus measures largely underwhelmed. A Trump presidency is also expected to herald more economic pressure on the country.