FX.co ★ Oil Hovers Near Five-month Lows On Demand Concerns

Oil prices traded weak near five-month lows on Wednesday as investors fretted over weakening global demand and continued uncertainty about the depth and duration of OPEC+ supply cuts.

Concerns over China's economic health and industry data showing an unexpected build in U.S. crude stockpiles also weighed on the commodity.

The downside remained limited after Russian Deputy Prime Minister Alexander Novak said OPEC+ was prepared to deepen supply cuts in the first quarter of 2024 if necessary.

Benchmark Brent crude futures slipped 0.3 percent to $77 a barrel, while WTI crude futures were down 0.4 percent at $72.05.

Both benchmarks closed at their lowest level since July 6 in the previous session due to uncertainties surrounding OPEC+ voluntary output cuts and concerns about demand growth in China, the world's biggest oil importer, especially after rating agency Moody's cut its outlook.

Moody's said, "The outlook change reflects the increased risks related to structurally and persistently lower medium-term economic growth and the ongoing downsizing of the property sector."

Meanwhile, data from industry group the American Petroleum Institute showed that crude oil inventories in the United States rose by 594,000 barrels in the week ending December 1, versus expectations for a draw of over 2 million barrels.

Weekly oil report from the Energy Information Administration (EIA) will be published later in the day.