NYMEX crude weaker in Asia as API data shows solid build

Investing.com - Cruse oil prices eased in Asia on Wednesday as industry data on U.S. stockpiles showed solid increases.

The American Petroleum Institute said crude oil supplies rose 1.8 million barrels last week and gasoline supplies gained 1.6 million barrels as the summer driving season got underway. Distillate product estimates were not immediately available.

Later Wednesday more closely-watched figures on crude and refined products will be released by the U.S. Department of Energy.

Overnight, crude futures rose significantly on Tuesday, as Saudi Arabia offered hints that OPEC will maintain production at its current level during Friday's critical meeting in Vienna.

On the New York Mercantile Exchange, WTI crude for July delivery fell 0.60% to $60.89 a barrel. At one point, Texas Long Sweet futures reached a session-high of $61.56, its highest level in two weeks. The rally extends the gains from late last week when WTI crude soared more than 4.5% amid dwindling U.S. stockpiles.

On the Intercontinental Exchange (ICE), Brent crude for July delivery gained 0.75 U.S. cents or 1.16% to $65.63 a barrel on Tuesday.

Arriving in Vienna on Monday night, Saudi Arabia oil minister Ali al-Naimi appeared pleased with the current supply-demand balance in the global oil markets. OPEC is widely expected to keep its production ceiling unchanged at above 30 million barrels per day at the meeting later this week.

“Demand is picking up. Good! Supply is slowing, right? That is a fact,” Al-Naimi told reporters. In terms of short-term crude prices, did not make any predictions on where crude is heading for the remainder of 2015. Though crude is down from its peak of $115 last June, they are still up roughly 20% since falling to near $45 a barrel in January.

“I don’t have a crystal ball but it is (going) in the right direction,” Al-Naimi added.

Last week, however, U.S. crude production increased to 9.566 million barrels per day up from a total of 9.262 a week earlier.