NYMEX, Brent weaker in Asia as market looks ahead to API data

Investing.com - Investing.com - Crude prices held weaker in Asia on Tuesday as investors looked ahead to U.S. industry stockpiles data and noted China consumer and producer prices remained largely in check, confirming tepid demand in the world's second largest crude importer highlighted in trade data on Monday.
China reported CPI for July with a 0.2% gain in July, a faster pace than the 0.1% gain seen month-on-month and an annual level of 1.7%, a tad below a 1.8% pace seen year-on-year. PPI figures from China showed a decline of 1.7%, less than the fall of 2.0% year-on-year expected.
On the New York Mercantile Exchange, WTI crude for September delivery eased 0.56% to $42.78 a barrel. On the Intercontinental Exchange (ICE), Brent crude for October delivery fell 0.64% to $45.10 a barrel.
The American Petroleum Institute will release its estimates of U.S. crude and refined products in storage by the end of last week, with the figures to be followed on Wednesday with data from the U.S. Department of Energy.
Overnight, crude futures rose sharply, hitting near two-week highs on Monday, as investors reacted to bullish comments from OPEC president Mohammed bin Saleh al-Sada on the possibility of an accord between member states at a meeting in Algeria in late-September aimed at stabilizing the volatile global energy market.
Al-Sada emphasized that the global oil market remains on pace for rebalancing in spite of signals of continued volatility worldwide. Al-Sada, who also serves as the energy minister of Qatar, said Monday in a closely-watched statement that OPEC will hold an informal meeting of member countries on the sidelines of the International Energy Forum in Algeria on Sept. 26-28.
"The recent decline observed in oil prices and the current market volatility is only temporary," Al-Sada said in a statement. "OPEC continues to monitor developments closely, and is in constant deliberations with all member states on ways and means to help restore stability and order to the oil market."
The statement was released days after data indicated that hedge funds increased their short positions in WTI crude last week to the highest level in a decade. On Friday, the U.S. Commodity Futures Trading Commission (CFTC) said short positions in WTI futures and options rose to 218, 623 for the week ending on Aug. 2, the highest amount since 2006. Over the last three weeks, hedge funds have nearly doubled their short positions in WTI crude, according to the CFTC.