Oil edged lower as markets awaited US crude inventory data, with estimates pointing to another sizable increase.
(Bloomberg) — Oil edged lower as markets awaited US crude inventory data, with estimates pointing to another sizable increase.
An industry report sees US inventories expanding by 6.2 million barrels last week. If confirmed by official data due later on Wednesday, that would put stockpiles at the highest since May 2021. Prices were also pressured lower as inflation data led traders to anticipate that central bankers are likely to stay hawkish for the coming months.
Earlier, prices rallied after China posted strong manufacturing data and India released strong oil-sales data, bolstering the outlook for oil demand for some of the world’s biggest crude importers. West Texas Intermediate traded near $77 a barrel, trading in a narrow range on Wednesday.
Crude has weakened this year as the prospect of tighter US monetary policy and rising inventories counter optimism that Chinese demand will strengthen following the ending of coronavirus lockdowns in the world’s second-biggest economy.
Russian flows are also in focus as western sanctions and bans linked to the war in Ukraine tighten. Although Moscow has largely managed to keep exports going by finding new buyers, there are signs of friction, including in India, a key outlet for Russian crude.
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