NYMEX crude oil weakened to trade near $64.5 per barrel weighed down by bigger than expected increase in US crude oil stocks.
API weekly report noted a 5.32 million barrels increase in US crude oil stocks as against forecast of 0.1 mn bbl rise. API however noted a bigger than 5.8 million barrels decline in gasoline stocks and 2.24 mn bbl decline in distillate stocks.
Focus now will be on US EIA weekly report due at 2000 IST. Apart from stocks focus will be on production and refinery demand. US weekly crude production is at record high level of 10.407 million barrels per day.
Also weighing on crude oil is weakness in equity markets. Asian equity markets trade lower today after losses in US equity market. Market sentiment remains weak despite prospect of a trade deal between US and China which could avert a full-fledged global trade war.
However, supporting crude is cooperation between Russia and OPEC to stabilize global market and tensions between Saudi Arabia and Iran.
As per reports, Saudi Crown Prince Mohammed bin Salman said that OPEC is seeking a long-term deal to cooperate on oil output controls with Russia and other non-OPEC producers. Tensions between Iran and Saudi Arabia rose post recent missile attacks by Yemeni militants on Riyadh. US is mulling pulling out of 2015 Iran nuclear deal which could affect Iranian oil industry.