Oil prices edge lower amid poor China, US economic data

Oil prices edged lower on Wednesday, extending losses a third day, with markets still concerned about signs of global economic weakness. 

PHOTO: AFP

OCT 15, 20157:06 AM

[NEW YORK] Oil prices edged lower on Wednesday, extending losses a third day, with markets still concerned about signs of global economic weakness.

US benchmark West Texas Intermediate for delivery in November finished off two cents at US$46.64 per barrel.

Brent North Sea crude for November dipped nine cents to US$49.15 in London.

Weak Chinese trade data for September combined with a negative turn for wholesale prices and poor consumer spending data in the US added to the picture of a slowing global economy overall, analysts said.

"We continue to struggle with the economic data, this morning it was fairly negative," said John Kilduff of Again Capital.

Underpinning the bearish sentiment was the International Energy Agency forecast on Tuesday, which expected much slower demand growth next year.

"A projected marked slowdown in demand growth next year and the anticipated arrival of additional Iranian barrels - should international sanctions be eased - are likely to keep the market oversupplied through 2016," the Paris-based IEA said.

Meanwhile US crude inventories are expected to rise in Thursday's report.

A Bloomberg News survey showed stockpiles are expected to have increased by 2.58 million barrels in the week to October 9. A rise suggests weaker demand in the United States, the world's top oil-consuming nation.

"For now the glut on the ground, in terms of fuels, refined products and crude oil, is a bit much for the market to be able to support," said Mr Kilduff.

AFP