Investing.com - Crude prices fell in Asia on Wednesday after industry estimates showed US crude supplies gained at the end of last week, though official data is awaited for confirmation.
On the New York Mercantile Exchange crude futures for September delivery fell 0.73% to $48.80 a barrel, while on London's Intercontinental Exchange, Brent eased 0.06% to $51.44 a barrel.
Crude oil inventories rose an unexpected 1.78 million barrels at the end of last week, the American Petroleum Institute said late Tuesday, with the industry data often seen as an unreliable place-setter for official data later today.
Gasoline was reported as a draw of 4.8 million barrels following a build of 1.9 million barrels the previous week. Distillate registered a draw of 1.22 million barrels after a draw previously.
Analysts estimate the Energy Information Administration will report on Wednesday that crude oil inventories were down 2.9 million barrels in the past week, while distillates fell 225,000 barrels and gasoline stocks dipped 1.050 million barrels. The API and EIA figures often diverge.
Overnight, crude futures settled lower on Tuesday, as the rally in oil prices cooled, following reports that Opec increased output despite the group’s pact to curb production.
Investors skepticism over Opec’s ability to tackle the glut in supply resurfaced Tuesday after survey data from Reuters showed an uptick in Opec production despite the group’s pledge to increase compliance with the deal to cut production.
A survey from Reuters showed output from the Organization of the Petroleum Exporting Countries rose by 90,000 barrels a day in July, to a 2017 high of 33 million barrels.
The bearish survey comes a day after crude prices settled above $50 a barrel, on the back of expectations that some members of the Opec and non-Opec nations will meet on Aug 7-9 in Abu Dhabi to discuss how to increase compliance.
In May, Opec and non-Opec members agreed to extend production cuts for a period of nine months until March, but stuck to production cuts of 1.8 million bpd agreed in November last year.
Meanwhile in the U.S., fresh inventory data from the American Petroleum Institute later Tuesday as well as a further report from EIA late Wednesday is expected to show continued tightening in U.S. crude stockpiles.
Analysts forecast crude inventories fell by 2.9m barrels in the week ended July 28, the fifth-straight week of declines.