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NYMEX crude weaker in Asia as market awaits latest API estimates

Investing.com -

Investing.com - Crude oil prices eased on Tuesday with industry supply estimates from the U.S. expected to set the tone.

U.S. crude fell 0.45% to $46.08 a barrel on the New York Mercantile Exchange. The American Petroleum Institute will release its estimates of crude and refined product stock at the end of last week in data that will be closely followed following a massive draw of more than 12 million barrels. Traders attributed the drop to cargoes held offshore as hurricane weather disrupted shipping.

The figures will be followed by official data from the U.S. Department of Energy on Wednesday after it also reported a massive draw last week.

Overnight, oil prices extended losses on Monday after the Organization of the Petroleum Exporting Countries revised up its oil output forecast from non-member countries for 2017.

Global benchmark Brent fell 2.23%, to $46.94 on the ICE Futures Europe exchange. OPEC warned in its monthly report on Monday that oil markets will remain heavily oversupplied well into 2017 as new fields come online and U.S. shale drillers remain resilient in the face of cheap crude.

Non-OPEC supply for 2017 was revised up by 350,000 barrels per day (bpd) to average 56.52 million bpd, an increase on this year.

Demand for crude from OPEC will average 32.48 million bpd in 2017, the organization said, down from the previous forecast of 33.01 million bpd.

Despite robust oil demand growth, the oil market will remain oversupplied this year and next, the report said.

Oil prices had fallen ahead of the report, pressured lower by the stronger dollar and by increasing oil drilling activity in the United States. U.S. drillers added oil rigs for a tenth week last week, according to a report from services company Baker Hughes published on Friday.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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