By Gina Lee
Investing.com – Oil was mixed on Wednesday morning in Asia, with the American Petroleum Institute (API)’s prediction of a draw in crude oil supplies overshadowed by ongoing concerns over U.S. fuel recovery.
Brent oil futures were up 0.36% to $45.19 by 10 PM ET (3 AM GMT), while WTI futures were down 0.40% to $42.72.
API on Tuesday reported a draw of 4.264 million barrels for the week ended August 14, beating forecasts of a 2.9 million-barrel draw prepared by Investing.com.
But some investors raised concerns about U.S. fuel demand recovery, with the U.S. Congress still unable to reach a consensus on the latest stimulus measures to get economic demand recovery from COVID-19 on track.
Although House Speaker Nancy Pelosi indicated that Democrats were willing to cut their stimulus proposal “in half” in order to reach a deal with Republicans, Pelosi spokesman Drew Hammill reportedly clarified that Pelosi was referring to her previous stance of meeting Republicans “halfway, not cutting our bill in half.”
“Demand concerns weighed on oil prices, with U.S. economic stimulus still nowhere in sight and U.S.-Sino trade talks being postponed,” Hiroyuki Kikukawa, general manager of research at Nissan (OTC:NSANY) Securities, told Reuters.
“But losses were limited by positive news such as a drop in U.S. crude stocks,” he said in reference to the API prediction. Kikukawa also expects prices to stay within a tight range amid the mixed signals.
Investors are now looking to OPEC’s joint ministerial monitoring committee (JMMC), scheduled to take place later in the day after the meeting was postponed from the initial August 18 date. OPEC+ members are due to review adherence to output cuts. Russian Energy Minister Alexander Novak is expected to join the video meeting, despite having tested positive for COVID-19 on Tuesday.