Investing.com - Crude fell in Asia on Wednesday after bearish figures on U.S. inventories from an industry group offset by upbeat manufacturing figures from China, the world's second largets oil importer.
The American Petroleum Institute (API) said late Tuesday that crude inventories jumped 5.8 million barrels at the end of last week, while distillate stocks rose 2.3 million barrels and gasoline supplies by 2.9 million barrels and stocks at Cushing, Oklahoma, fell by 900,000 barrels.
The estimates will be followed on Wednesday by official figures from the U.S. Department of Energy. Analysts forecast a 3.063 million barrels crude build for the Department of Energy data.
As well, China's official manufacturing Purchasing Managers' Index (PMI) continued in expansion in January, as the mainland economy shows signs of stabilizing, reaching 51.3, down slightly from 51.4 in December, but still better than a Reuters poll forecasting 51.2.
A reading above 50 indicates expansion, while a reading below signals contraction.
On the New York Mercantile Exchange, crude oil for delivery in March fell 0.17% to $52.72 a barrel, while on the Intercontinental Exchange in London, Brent oil for March delivery eased 0.34% to $55.47 a barrel. Markets in China and Hong Kong were shut for the Lunar New Year holidays.
Overnight, crude prices settled higher in the U.S. on Tuesday as traders see early signs that a coordinated effort to trim nearly 1.8 million barrels-per-day from global markets in the first half of 2017 is on track.
The API estimates will be followed on Wednesday by official figures from the U.S. Department of Energy. Analysts forecast a 3.063 million barrels crude build for the Department of Energy data.
Investors were also keeping an eye on central bank policy reviews in the U.S. on Wednesday and the U.K. slated this week that could set the tone on demand prospects. The Bank of Japan on Tuesday raised its growth forecast to 1.4% in the year ending March 31, from 1%, while holding policy steady.
A deal by OPEC and non-OPEC member countries such as Russia to reduce output has supported prices globally above $50 a barrel. As well, the International Energy Agency (IEA) has forecast continued demand growth by leading importers in emerging economies in Asia such as China and India.