Oil down as API shows crude stockpiles rise

Oil prices traded lower on Wednesday in Asia after data from the American Petroleum Institute (API) showed that US crude stockpiles rose last week.

US Crude Oil WTI Futures lost 0.8% to $54.07 by 12:38 AM ET (04:38 GMT). International Brent Oil Futures were down 0.5% to $59.43.

Crude inventories rose by 4.5 million for the week ended Oct. 18, the API said.

The Energy Information Administration (EIA)’s weekly report is due tomorrow. Analysts expect the EIA to report a build of 2.23 million barrels.

Oil prices have slumped about 18% from an April peak as the Sino-US trade war dragged on and as global supplies swelled.

Citing unnamed OPEC sources, Reuters reported that the Organization of Petroleum Exporting Countries and its partners are concerned about the demand outlook next year.

“If we see that the official number is in line with the API data, I suspect we would see a severe reaction and heavy selling in crude markets,” said Michael McCarthy, chief market strategist at CMC Markets Asia Pacific Pty, in a Bloomberg report.

“The next OPEC meeting is not until December. The market will remain cautious and is very vulnerable to headline risk.”