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NYMEX oil falls in Asia as API crude drop shrugged off

Published 12/06/2016, 08:59 PM
Updated 12/06/2016, 09:02 PM
© Reuters.  NYMEX crude down in Asia
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Investing.com - Crude prices fell in Asia on Wednesday despite a draw in U.S. stocks in American Petroleum Institute (API) figures that also showed solid builds in gasoline and distillate inventories.

On the New York Mercantile Exchange, West Texas Intermediate crude for January delivery fell 0.45% to 50.70 a barrel.

The API data will be followed Wednesday by more closely-watched official figures from the U.S. Department of Energy.

Overnight, crude ended a four-day winning streak on views that Organization of Petroleum Exporting Countries would fail to adhere to an agreement to curb output.

"With both Russia and OPEC producing at record amounts, the market is scratching its head about how both blocs will manage to comply with the Vienna production cut targets," said Jeffrey Halley, senior market analyst at OANDA, in a note on Wednesday.

On London's Intercontinental Exchange, Brent crude for February delivery was last quoted at $53.56 a barrel.

As well, domestic oil production and inventory in the U.S. is also making news with the Jack Gerard of the American Petroleum Institute lobbying president-elect Donald Trump this week to "restore the rule of law" in America's regulatory regime and make the approval of the Dakota Access Pipeline a top priority when he takes office.

“Modernizing our nation’s energy infrastructure benefits American consumers by keeping energy affordable, creating well-paying American jobs, and improving our environment,” said Gerard, based in Washington D.C.

“Moving forward, I am hopeful President-elect Trump will reject the Obama administration’s shameful actions to deny this vital energy project, restore the rule of law in the regulatory process, and make this project’s approval a top priority," Gerard concluded. “I am troubled, though not surprised, that the Obama administration is again putting politics over sound public policy and ignoring the rule of law."

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