Oil prices in Asia dipped slightly on Thursday following uncertain industry data on U.S. inventories, with a focus on China and the International Energy Agency for demand cues.

After a small rebound on Wednesday, prices were still down this week as OPEC reduced its demand forecast for the fourth month in a row. China’s fiscal measures also failed to impress.

Crude oil for January delivery fell 0.1% to $72.23 a barrel, while Brent crude dropped 0.1% to $68.17 a barrel.

US oil inventories decrease, but product stocks rise- API

The American Petroleum Institute data on Wednesday indicated a decrease of about 777,000 barrels in U.S. oil inventories for the week ending November 8, defying expectations for an increase of 1 million barrels following a build of 3.1 million barrels the previous week.

However, gasoline stockpiles rose by 312,000 barrels, and distillate inventories increased by 1.1 million barrels, raising concerns about cooling U.S. fuel demand as winter approaches.

The API data typically foreshadows a similar trend in the EIA report, which was delayed this week due to a U.S. holiday.

Oil prices were also impacted by reduced fears of U.S. supply disruptions as tropical storm Rafael dissipated without major consequences in the Gulf of Mexico.

Uncertainty regarding the impact of a potential second term for President Trump on crude prices, given his intentions to boost U.S. oil production and impose tariffs on China, also weighed on the market.

IEA demand outlook, China stimulus in focus

All eyes are now on the upcoming report from the International Energy Agency later on Thursday, following OPEC’s cut in demand growth forecast and concerns over China’s cooling demand.

China’s economic slowdown and lackluster stimulus efforts have been a key concern for oil markets, with expectations of more pressure under a Trump administration.

Overall, the mixed data on U.S. inventories, combined with uncertainties surrounding global demand and geopolitical factors, continue to influence oil prices and market sentiment.

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