Investing.com– Oil prices fell in Asian trade on Wednesday after industrial data showed a larger-than-expected rise in U.S. inventories, while focus remained on potential supply disruptions due to of a hurricane in the Gulf of Mexico.
Markets were also watching the US presidential election and a high-level political meeting in China for more clues.
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Expiring January oils were down 0.6% at $75.11 a barrel, while oils were down 0.5% at $71.24 a barrel as of 8:11 p.m. ET (01:11 GMT).
Oil prices were sitting on some gains in recent sessions, after the Organization of the Petroleum Exporting Countries and its allies (OPEC+) delayed plans to start raising production this year. Some expectations of U.S. supply disruptions also supported crude, as well as dollar weakness.
US stocks rise more than expected – API
Data from the American Petroleum Institute showed that US oil inventories rose by 3.1 million barrels in the week through November 1, far more than expectations for a 1.8 mb increase. .
Stocks of products – gasoline and distillates – experienced slight declines.
API data typically heralds a similar reading in official inventory data, which is due out later on Wednesday. These figures have raised concerns about a slowdown in U.S. fuel demand, particularly as the winter season approaches.
U.S. production is also expected to have remained near record levels of more than 13 mb per day, keeping supply in the country relatively high.
However, U.S. oil production is expected to experience some disruption in the coming days, particularly as energy companies have begun evacuating workers to the Gulf of Mexico in anticipation of Hurricane Rafael, which is expected to make landfall in Louisiana later this week.
The storm strengthened to a Category 1 hurricane on Tuesday.
Oil markets prepare for a busy week
Risk appetite in crude markets remained limited as traders braced for a series of major signals expected in the coming days.
Much of the focus has been on the 2024 presidential election, with early results from the Associated Press showing Donald Trump ahead of Kamala Harris. But a large part of the votes have not yet been counted.
Beyond the election, attention this week is focused on China's National People's Congress meeting, where Beijing is expected to present new fiscal spending plans.
The Federal Reserve meeting is also in focus, with the central bank expected to cut interest rates by 25 basis points on Thursday.
