Crude oil futures settled slightly up on Wednesday, with traders weighing possible disruption in oil production in Syria following Turkey’s military operation against Kurdish fighters in the northeastern part of Syria.
However, an increase in U.S. crude inventories in the week ended October 4 – the fourth successive weekly increase – significantly limited oil’s gains.
Optimism about U.S.-China trade talks too capped oil’s upside.
West Texas Intermediate Crude oil futures for November ended up $0.04, or about 0.08%, at $52.80 a barrel, after having advanced to a high of $53.74 a little before noon.
According to the data released by the Energy Information Administration (EIA) Wednesday morning, crude oil inventories increased by 2.9 million barrels in the week ended October 4.
Gasoline inventories were down 1.2 million barrels last week, while distillate fuel stockpiles declined 3.9 million barrels.
The EIA had on Tuesday revised downward the average West Texas Intermediate price to $57 a barrel from $62 a barrel by the second quarter of next year.
On Tuesday, the American Petroleum Institute (API) reported crude oil inventory build of 4.13 million barrels last week.
In trade news, China is reportedly open to reaching a partial trade deal with the U.S. despite the imposition of visa restrictions and blacklisting of Chinese artificial intelligence companies by the U.S.
An official with direct knowledge of the talks told Bloomberg that negotiators aren’t optimistic about securing a broad agreement to end the U.S.-China war but said China would accept a limited deal as long as President Donald Trump does not impose any more tariffs.
In return, the official told Bloomberg, Beijing would offer non-core concessions like purchases of agricultural products without giving in on major sticking points.
The material has been provided by InstaForex Company – www.instaforex.com