Oil Down On Russia Output, China; US Inventory Build Seen
NEW YORK, Nov 2 (Reuters) - Oil prices fell on Monday after soft Chinese factory data raised worries about energy demand in the No. 2 economy, while record high Russian crude output suggested little easing in the global supply glut.
Also pressuring crude futures was heating oil, which fell on expectations of inventory builds from unseasonably warm weather. Traders also expect stockpile rises in ultra low sulfur diesel, a variant of heating oil, as more plants emerge from the autumn maintenance cycle for U.S. refineries.
U.S. crude oil stockpiles likely rose by 2.7 million barrels last week, growing for a sixth consecutive week, a Reuters poll showed. Industry group the American Petroleum Institute (API) will issue its preliminary inventory data on Tuesday before official numbers on Wednesday from the U.S. government.
Brent, the global crude benchmark, settled down 77 cents, or 1.6 percent, at $48.79 a barrel.
U.S. crude futures closed down 45 cents, or 1 percent, at $46.14.
Early in the session, oil saw some support as the dollar came under pressure from data showing a fourth straight month of declines in October in U.S. manufacturing activity.
The dollar later rebounded, trading almost flat against a basket of currencies.
View Full Article
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.