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Oil Prices Down Amid Rising Crude Stockpile

Published 12/10/2019, 11:09 PM
Updated 12/10/2019, 11:10 PM
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Investing.com - Oil prices traded lower on Wednesday in Asia after the American Petroleum Institute (API) reported that U.S. crude stockpiles rose last week.

U.S. Crude Oil WTI Futures lost 0.6% to $58.91 by 10:52 PM ET (02:52 GMT), while international Brent Oil Futures fell 0.7% to $63.90.

The API said crude inventories rose by 1.41 million for the week ended Dec. 6.

Analysts expect that the Energy Information Administration will report a draw of 2.8 million barrels when it issues numbers tomorrow morning. The EIA numbers are due at 10:30 AM ET (15:30 GMT).

Trade uncertainties were also said to be dragging oil prices down today. While the Wall Street Journal reported overnight that Washington might delay a planned tariff on Chinese goods that are set to kick in on Sunday, White House economic advisor Larry Kudlow cautioned that the tariffs are still “on the table.”

Meanwhile, White House adviser Peter Navarro also said he saw no indication that the tariff hike will be averted.

U.S. and Chinese trade negotiators are continuing to haggle over how to get Beijing to commit to massive purchases of U.S. farm products that President Donald Trump was insisting on for a near-term deal, the Journal reported.

So far, China and the U.S. have yet to reach a phase one trade deal. Reuters reported earlier this month that the signing of the deal might slide into next year.

The back-and-forth on the tariffs has weighed on oil prices and other risk assets this year. Weak global economic data, such as the weekend data that showed export from China that unexpectedly fell 1.1% in November, were also cited as headwinds.

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