Oil prices eased on Wednesday as investors digested weaker economic data from top oil importers, but an expected drop in US fuel inventories limited further losses.
Brent crude futures were down 37 cents, or 0.6 per cent, at $64.07 a barrel by 1419 GMT, while US West Texas Intermediate crude was 43 cents, or 0.7 per cent, lower at $60.13.
Oil prices followed equities lower, as a shift in risk sentiment has been an important driver in recent days, said UBS analyst Giovanni Staunovo.
Weaker economic data, coupled with a rally in the US dollar, suppressed prices, however they found support from lower US fuel stocks, PVM analyst Tamas Varga said.
China’s factory activity shrank for a seventh month in October, while US manufacturing contracted for an eighth straight month in October.
The US dollar index, which measures the currency against the euro, sterling and other peers, was at a three-month high, buoyed by division among the Federal Reserve board, indicating low odds for an interest rate cut in December.
A stronger greenback makes dollar-denominated oil more expensive for holders of other currencies, which can affect demand. A US interest rate cut typically boosts demand.
US crude stocks rose by 6.52 million barrels while gasoline and distillate inventories fell by 5.65 million and 2.46 million barrels, respectively, in the week ended October 31, sources said, citing Tuesday’s American Petroleum Institute figures.
On the supply side, Russia’s Black Sea port of Tuapse has suspended fuel exports, while its oil refinery halted crude processing after Sunday’s Ukrainian drone attacks on its infrastructure, according to two industry sources and LSEG ship tracking data.
Kazakhstan’s crude oil production, excluding gas condensate, declined 10 per cent last month to 1.69 million barrels per day, still above the OPEC+ output quota, according to an industry source and Reuters calculations.
The Organization of the Petroleum Exporting Countries and allied producers, a group known as OPEC+, agreed on Sunday to increase output by 137,000 barrels a day in December. It decided to pause further increases in the first quarter of 2026. (Reporting by Colleen Howe in Beijing and Siyi Liu in Singapore; Editing by Jan Harvey and Ros Russell)
