Oil prices edged lower in Asian trade on Wednesday after a better-than-expected industrial data boosted U.S. stocks, even as attention focused on potential supply disruptions due to hurricanes in the Gulf of Mexico.
Oil prices sat on some gains from recent sessions after the Organization of the Petroleum Exporting Countries (OPEC+) postponed plans to begin increasing production this year. Crude was supported by currency weakness and some expectations of disruptions in US supplies.
According to data from the American Petroleum Institute, U.S. oil stocks rose by 3.1 million barrels in the week ended Nov. 1, well above expectations of 1.8 million barrels. U.S. production is expected to peak at more than 13 megabytes per day to maintain relatively high supply in the country.
However, some disruptions to U.S. oil production are likely in the coming days, especially since energy companies began evacuating workers in the Gulf of Mexico in preparation for Hurricane Rafael, which is forecast to hit Louisiana later this week.
