Singapore — Crude oil futures edged higher during mid-morning trade in Asia Thursday amid mild profit taking after a build in US stocks triggered a more than $1.50/b fall overnight.
At 10:15 am Singapore time (0215 GMT), ICE October Brent crude futures were up 42 cents/b (0.59%) from Wednesday's settle at $71.18/b, while the NYMEX September light sweet crude contract was 11 cents/b (0.17%) higher at $65.12/b.
"Prices are consolidating a bit this morning, likely due to some profit taking after the slump last night," said Philips Futures investment analyst Benjamin Lu.
Data released Wednesday by the Energy Information Administration showed US crude inventories rose 6.81 million barrels in the week ended August 10.
Analysts surveyed Monday by S&P Global Platts had been expecting a 1.7 million-barrel draw and the surprise build triggered a selloff.
"The energy market couldn't escape the wave of selling as investors dumped any holdings in the asset class," ANZ analysts said in a note Thursday.
US gasoline inventories fell 740,000 barrels in the week to 233.13 million barrels, while distillate stocks rose 3.57 million barrels to 129 million barrels, the EIA data showed.
The fall in NYMEX WTI futures was capped during Asian morning trade by mild profit taking, although overall market sentiment was weak, analysts said.
"Bearish sentiment prevails for now as investors are starting to weigh in weaker global demand and rising inventories," said Lu. "Although prices have stabilized a bit this morning, they are likely to recede a bit later through the day," he added.
Inventors are also monitoring the impact of US sanctions on Iran on importing countries, which was supporting Brent prices, analysts said.
"The impact of the US pulling out of the Iranian nuclear deal continues to play out," said ANZ analysts Thursday, adding reports that "India has said it is considering cutting its imports of Iranian crude" was affecting sentiment.
As of 0215 GMT, the US Dollar Index was down 0.19% at 96.425.
