Oil dips on prospect of peak US production, despite strong demand signals
investing.comBy Paul Carsten
LONDON (Reuters) -Oil prices dipped on Wednesday amid signs the United States, the world's biggest oil producer, is at peak production, offsetting positive crude demand signals from top consumer China.
Brent futures were down 34 cents to $82.13 a barrel at 0949 GMT, while U.S. West Texas Intermediate (WTI) crude was down 40 cents to $77.86.
China's economic activity perked up in October as industrial output increased at a faster pace and retail sales growth beat expectations, an encouraging sign for the world's second-largest economy.
The International Energy Agency joined the Organization of the Petroleum Exporting Countries and its allies (OPEC+) in raising oil demand growth forecasts for this year, despite projections of slower economic growth in many major countries.
«With China being a scapegoat for much of the world's lack of industrial demand, this glimmer of light ought to aid oil's progress but the reluctance is so far winning out,» said John Evans of oil broker PVM in a note.
Downward pressure on oil prices may come from the supply side, with the United States «likely at peak production for crude,» while the delayed release of oil data from the world's biggest producer makes the investment situation more opaque, Evans said.
The U.S. Energy Information Administration (EIA) will release its first oil inventory report in two weeks on Wednesday, after a delay last week due to a systems upgrade. [EIA/S]
The Financial Times reported on Wednesday that Denmark will be tasked with inspecting and potentially blocking Russian oil tankers sailing through its waters under new European Union plans, as the West explores more ways of enforcing a price cap on Moscow's crude.
However, it is still to be seen how
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