Crude oil futures pared early gains and settled moderately lower on Thursday after data showed a larger than expected increase in crude stockpiles last week.
Concerns about the outlook for energy demand due to global economic slowdown and the continued uncertainty about a potential U.S.-China trade deal weighed on the commodity.
West Texas Intermediate Crude oil futures for December ended down $0.35, or about 0.6%, at $56.77 a barrel.
Brent crude oil futures edged down marginally to $62.30 a barrel.
On Wednesday, WTI crude oil futures for December ended up $0.32, or 0.6%, at $57.12 a barrel.
Oil prices moved higher by about 1% Thursday morning after a report from the American Petroleum Institute (API) said late Wednesday that U.S. crude inventories surprisingly dropped last week.
OPEC said it expects a smaller surplus in the oil market next year although it still feels demand for its crude will likely drop as rivals pump more.
The API data said U.S. crude inventories declined by 541,000 barrels in the week ended November 8, against analysts’ expectations of an increase of 1.6 million barrels.
In contrast, the data released by the Energy Information Administration Thursday morning said oil inventories in the U.S. increased by 2.2 million barrels in the week ended November 8.
Gasoline inventories were up by nearly 1.9 million barrels in the week and distillate stockpiles dropped by larger than expected about 2.5 million barrels.
The material has been provided by InstaForex Company – www.instaforex.com