SINGAPORE: Oil prices diverged in Asia on Thursday as a report showing increased production by the OPEC cartel bolstered expectations a supply glut will persist well into next year.
Weak economic data from the United States and China further confirmed the global economic slowdown this year and next projected by the World Bank and International Monetary Fund, likely denting oil demand.
Traders are also awaiting the release later Thursday of data on US commercial crude inventories in the week ending October 9 to gauge demand in the world’s top oil consumer.
Market observers expect a build in the stockpiles, which would indicate softer demand.
US benchmark West Texas Intermediate (WTI) for November delivery dipped 0.28 percent to $46.54 and Brent crude for November, which expires Thursday, climbed 0.31 percent to $49.30 at around 3:30 a.m. local time. Both contracts fell on Wednesday.
The recent price falls for both contracts have wiped out most of last week’s nine percent gains that helped WTI breach $50 a barrel for the first time since July.