Oil Steady Amid Weak Economic Data, Equity Markets

Summary

Weaker data in the US, China fuel demand concerns
Russia suspends fuel exports at Black Sea refinery
US dollar index holds at three-month high

(Reuters) – Oil prices were steady on Wednesday as investors digested weaker economic data from top oil importers while U.S. inventory data provided some support.

Brent crude futures were down 22 cents, or 0.34%, at $64.22 a barrel by 1218 GMT, while U.S. West Texas Intermediate crude was 28 cents, or 0.46%, lower at $60.28.

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Oil prices followed equities lower on Wednesday, as a shift in risk sentiment has been an important driver in recent days, said UBS analyst Giovanni Staunovo.

Weaker economic data coupled with a rally in the U.S. dollar kept oil from making significant gains, while prices found support from refined products amid lower U.S. stocks, PVM analyst Tamas Varga said.

China’s factory activity shrank for a seventh month in October, while U.S. manufacturing contracted for an eighth straight month in October.

The U.S. dollar index , which measures the currency against the euro, sterling and other peers, was at a three-month high, buoyed by division among the Federal Reserve board, indicating low odds for an interest rate cut in December.

A stronger greenback makes dollar-denominated oil more expensive for holders of other currencies, which can affect demand. A U.S. interest rate cut typically boosts demand.

Earlier in the day oil found support from lower U.S. fuel stocks.

U.S. crude stocks rose by 6.52 million barrels while gasoline and distillate inventories fell by 5.65 million and 2.46 million barrels, respectively, in the week ended October 31, sources said, citing Tuesday’s American Petroleum Institute figures.

On the supply side, Russia’s Black Sea port of Tuapse has suspended fuel exports, while its oil refinery halted crude processing after Sunday’s Ukrainian drone attacks on its infrastructure, according to two industry sources and LSEG ship tracking data.

Kazakhstan’s crude oil production excluding gas condensate declined 10% last month to 1.69 million barrels per day, still above the OPEC+ output quota, according to an industry source and Reuters calculations.

The Organization of the Petroleum Exporting Countries and allied producers, a group known as OPEC+, agreed on Sunday to increase output by 137,000 barrels a day in December. It decided to pause further increases in the first quarter of 2026.

Reporting by Colleen Howe in Beijing and Siyi Liu in Singapore; Editing by Clarence Fernandez and Jan Harvey