There was a weaker hold on the crude prices in Asia this past Wednesday after the industry figures displayed a huge build in U.S. crude stockpiles.
With regards to the December delivery, crude oil dropped 1.30 percent on the New York Mercantile Exchange to {currency}49.31 per barrel. There was only a 1.12 percent drop for the December delivery of Brent oil on the ICE Futures Exchange in London to {currency}50.22 per barrel.
On Tuesday, according to the American Petroleum Institute (API), the crude inventories rose to 4.8 million barrels in the past week. This increase in barrels was larger than anticipated, following a 3.8 million draw the week earlier. There was an ease of 2.3 million barrels for the stocks at Cushing, noted API. This ease was due to an outage of a pipeline feeding the facility which continues to crumple flows. There was a recording of a build of 1.7 million barrels for gasoline inventories, as well as distillates which fell 900,000 barrels.
On Wednesday, there will be official data released from the Energy Information Administration. This data release comes amid the forecast for an increase of 800,000 barrels in oil-stock.
Overnight on Tuesday, the oil prices were placed under pressure in North American trade. This pressure was a reverse of the earlier gains due to the fading expectations of a regulated production cut among the major global oil producers and U.S. dollar which has a stronger weight.
The second biggest producer in OPEC following Saudi Arabia, Iraq announced recently that it planned to be exempt from any production hold deal among the major global producers.
In the recent days, there has been pressure placed on the global oil prices. This pressure comes amid the market skepticism about the implementation of the proposed deal by OPEC to put a limit on production.
This agreement, to put a cap on the production, was reached by the 14-member oil group. This cap on the output was for a range of 32.5 million to 33.0 million barrels per day. The agreement was reached late last month after the talks held on the sidelines of an energy conference in Algeria.
Nevertheless, OPEC announced that it would not finalize the details on the individual output quotas until the next official meeting which is due to take place on November 30 in Vienna. At that time, the invitation may be extended to the non-OPEC countries, like Russia, to join the deal
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