Oil extended declines in Asian trading Wednesday after President Donald Trump re-opened his war of words with China over trade and a report showed crude inventories expanded last week in the world’s biggest economy.
Futures in New York were down 0.7%, adding to Tuesday’s 2.3% drop. The American Petroleum Institute was said to report a 1.38-million barrel increasein oil stockpiles, adding to downside pressure after a hardline United Nations speech by Trump that accused China of currency manipulation, theft of intellectual property and dumping. He also took aim at Iran for its “menacing behavior.”
Meanwhile, traders are closely tracking Saudi Arabia’s progress in restoring key crude installations crippled by aerial attacks more than a week ago. State-controlled oil producer Aramco has maintained that most of the disrupted capacity will be online by the end of the month, a target some observers have criticized as too ambitious.
West Texas Intermediate for November delivery fell 40 cents to $56.89 a barrel on the New York Mercantile Exchange as at 8:18 a.m. Sydney time. November WTI dropped $1.35 to settle Tuesday at $57.29 a barrel.
Brent crude for November settled down $1.67 at $63.10 a barrel on the ICE Futures Europe Exchange.
Source : Bloomberg