Oil prices drop on rising stockpiles, slowing Asian economies
Crude oil prices fell on Wednesday after industry data showed an increase in U.S. stockpiles, while China's factory output slowed and fears emerged that Japan's economy may have fallen into recession added to demand woes.
Benchmark U.S. crude futures slipped to a two-week low at $43.55 a barrel in early trading before edging back up to $43.72 a barrel by 0652 GMT, still down almost half a dollar from their last close.
Internationally traded Brent crude futures were down 29 cents at $47.15 a barrel. The price drops came on the back of rising stockpiles in North America and slowing economies in Asia.
U.S. crude stocks jumped by 6.3 million barrels in the week to Nov. 6 to 486.1 million barrels, data from industry group the American Petroleum Institute showed late on Tuesday, compared with analyst expectations for an increase of 1 million barrels.
China's oil demand rose 0.9 percent in October from a year earlier to 10.14 million barrels per day (bpd), according to Reuters' calculations based on preliminary government data, with many analysts expecting a further slowdown.
The oil market is also looking for any indicators from the Organization of the Petroleum Exporting Countries (OPEC) over its production policy.
