# Oil prices ease on U.S. inventory build, China COVID worries Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-11-09 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Oil prices slide on rising US crude stockpiles and China Meta Description: Get the latest updates on how U.S. crude stockpiles and China's COVID-19 situation impact oil prices. Stay informed with Reuters. URL: https://financedigest.com/oil-prices-ease-on-u-s-inventory-build-china-covid-worrieshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-11-09t014005z1lynxmpeia801wrtroptp4global-oil-1736814896884-compressed.jpg) By Sonali Paul and Isabel Kua SINGAPORE (Reuters) -Oil prices slid on Wednesday as industry data showed U.S. crude stockpiles rose more than [expected and on worries a rebound in COVID-19 cases in top importer China would hurt fuel demand](https://www.financedigest.com/merck-kgaa-expects-2023-profit-to-slip-as-covid-demand-wanes.html "Merck KGaA expects 2023 profit to slip as COVID demand wanes"). Brent crude futures fell 44 cents, or 0.5%, to $94.92 a barrel by 0454 GMT, while U.S. West Texas Intermediate (WTI) crude futures fell 53 cents, or 0.6%, to $88.38 a barrel. The benchmarks fell around 3% on Tuesday. U.S. [crude oil](https://www.financedigest.com/oil-dips-after-fed-comments-us-crude-stock-build.html "Oil dips after Fed comments, US crude stock build") inventories rose by about 5.6 million barrels for the week ended Nov. 4, according to market sources citing American Petroleum Institute figures, while seven analysts [polled by Reuters](https://www.financedigest.com/germany-home-prices-to-sink-nearly-6-this-year-reuters-poll.html "Germany home prices to sink nearly 6% this year – Reuters Poll") estimated on average that crude inventories would rise by about 1.4 million barrels. Last week, the market had latched on to hopes that [China might be moving toward relaxing COVID](https://www.financedigest.com/who-urges-china-to-share-specific-data-regularly-on-covid-situation.html "WHO urges China to share specific data regularly on COVID situation") restrictions but over the weekend health officials said they would stick to their “dynamic-clearing” approach to new infections. [COVID cases in Guangzhou and other Chinese](https://www.financedigest.com/were-going-to-be-free-chinese-cheer-as-covid-curbs-are-loosened.html "‘We’re going to be free’: Chinese cheer as COVID curbs are loosened") cities have surged, with the global manufacturing hub becoming the country’s newest COVID epicentre. With that ( [China reopening](https://www.financedigest.com/asian-shares-muted-as-investors-fret-over-china-reopening.html "Asian shares muted as investors fret over China reopening")) narrative getting pushed back, coupled with a considerable build on U.S. [inventory data](https://www.financedigest.com/chinas-low-copper-inventory-data-belie-sufficient-supply.html "China’s low copper inventory data belie sufficient supply"), implying dimming U.S. demand, the recessionary crews are back out in full force this morning in Asia,” Stephen Innes, managing [partner](https://www.financedigest.com/exclusive-crypto-giant-binance-moved-400-million-from-u-s-partner-to-firm-managed-by-ceo-zhao.html "Exclusive-Crypto giant Binance moved 0 million from U.S. partner to firm managed by CEO Zhao") at SPI Asset Management, said in a note. CMC Markets analyst Tina Teng said despite tight supply in the physical markets, [China’s slowdown in demand has a major impact on the oil](https://www.financedigest.com/oil-rises-about-2-with-u-s-and-china-inflation-in-focus.html "Oil rises about 2% with U.S. and China inflation in focus") futures markets. In another bearish sign, API [data showed gasoline inventories rose by about 2.6 million](https://www.financedigest.com/exclusive-binance-moved-346-million-for-seized-crypto-exchange-bitzlato-data-show.html "Exclusive-Binance moved 6 million for seized crypto exchange Bitzlato, data show") barrels, against analysts’ forecasts for a 1.1 million drawdown. The market will be looking out for official U.S. inventory [data from the Energy Information](https://www.financedigest.com/more-than-half-52-of-cisos-are-prioritising-gdpr-compliance-over-the-next-12-months-new-data-from-the-2017-financial-services-information-security-network-shows.html "More than half (52%) of CISOs are prioritising GDPR compliance over the next 12 months, new data from the 2017 Financial Services Information Security Network shows") Administration due at 10:30 a.m. EST (1530 GMT) for a further view on demand in the [world’s biggest economy](https://www.financedigest.com/at-chinas-largest-trade-fair-exporters-worry-about-world-economy.html "At China’s largest trade fair, exporters worry about world economy"). Meanwhile, supply [concerns remain as a European Union ban on Russian crude](https://www.financedigest.com/oil-near-flat-as-us-crude-stock-draw-contends-with-economic-concerns.html "Oil near flat as US crude stock draw contends with economic concerns") looms and the Organization of the Petroleum Exporting Countries and allies, or OPEC+, cuts output. The EU will ban [Russian crude imports by Dec](https://www.financedigest.com/russian-services-activity-shrinks-for-third-month-running-in-dec-pmi.html "Russian services activity shrinks for third month running in Dec -PMI"). 5 and [Russian oil](https://www.financedigest.com/oil-gains-as-russian-supply-cuts-temper-concerns-over-rate-hikes-high-stocks.html "Oil gains as Russian supply cuts temper concerns over rate hikes, high stocks") products by Feb. 5, in retaliation to [Russia’s invasion of Ukraine](https://www.financedigest.com/russia-promises-to-scale-down-operations-in-northern-ukraine.html "Russia promises to scale down operations in northern Ukraine"). (Reporting by Sonali Paul in Melbourne and Isabel Kua in Singapore; Editing by Himani Sarkar) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---