Oil prices steady after two-day drop as growth concerns weigh

By Seng Li Peng
SINGAPORE, Nov 20 (Reuters) - Oil prices were steady on
Wednesday, after falling the past two days, as a surge in U.S.
stockpiles reinforced concerns about lacklustre global economic
growth amid the trade war between the United States and China,
the world's two biggest oil consumers.
West Texas Intermediate (WTI) crude futures CLc1 rose 11
cents, or 0.2%, to $55.32 a barrel by 0252 GMT, after falling
4.3% during the previous two sessions.
Brent crude futures LCOc1 were at $60.93 a barrel, up 2
cents, or 0.03%. Brent dropped 3.8% during the prior two
sessions.
U.S. crude inventories rose 6 million barrels in the week to
Nov. 15 to 445.9 million, compared with analysts' expectations
for a increase of 1.5 million barrels, data from industry group
the American Petroleum Institute showed late on Tuesday.
The increase in inventories in the United States, the
world's biggest oil user, added to concerns about a crude
oversupply raised after Reuters reported that Russia, the
world's second-biggest producer, was unlikely to back deepening
output cuts when the Organization of the Petroleum Exporting
Countries (OPEC) meet on Dec. 5-6 in Vienna. Russia and other oil producers have agreed with OPEC to cut
1.2 million barrels per day of output through March to bolster
prices, a producer group known as OPEC+.
"Oil is also feeling heavy after the Russians signalled they
are unlikely to agree on deepening oil production cuts at the
December OPEC + meeting," said Edward Moya, an analyst at
brokerage OANDA, in a note.
"The API data also showed U.S. inventories posted a rather
robust increase last week, which if confirmed by the EIA report,
we could see oil prices continue to slide," he said.
Official U.S. government inventory data from the Energy
Information Administration is due at 10:30 a.m. EST (1530 GMT)
on Wednesday. U.S. crude demand has slowed amid its protracted trade war
with China. Hopes for an end to the dispute in the signing of a
so-called Phase 1 agreement between the sides has dimmed amid
disagreements over the removal of tariffs each side has enacted.
U.S. President Donald Trump on Tuesday said that the United
States would raise tariffs on Chinese imports if no deal is
reached with Beijing to end the war.
Knock on effects from the trade war have been felt in other
industrialized economies.
Japanese exports tumbled at their quickest pace in three
years in October, threatening to tip the trade-reliant economy
into recession because of weakening demand from the United
States and China. Crude imports to Japan, the world's fourth-largest oil
buyer, fell 1.3% in October compared to the same month a year
ago.