Oil prices have dribbled just a little lower in Asia trade.
The move is very small ahead of the OPEC+ meeting later today:
- OPEC + is the Organization of Petroleum Exporting Countries and its allies such as Russia
- Scuttlebutt on the meeting outcome has focused on potential additional production cuts
As we head into the meeting demand concerns have rekindled from the China data:
- China November PMIs: Manufacturing 49.4 (expected 49.7) Services 50.2 (expected 51.1)
- Both manufacturing and services missing estimates and lower than October.
- Manufacturing activity for a second straight month in November
- Manufacturing contracted quicker than it did last month
On the supply front the U.S. Energy Information Administration data on Wednesday reported a surprise build in US crude oil and distillate fuel stocks:
- Weekly EIA inventories crude oil +1609K versus -933K expected
- gasoline stocks by more than expected
This too points to likely softer demand.
