Crude oil prices dipped in Asia on Wednesday despite an industry report showing solid declines in U.S. stockpiles as sentiment grows that overall global demand is well within current supplies.
The American Petroleum Institute, an industry group, late Tuesday showed a 1.3 million-barrel drop in U.S. crude stocks last week, according to industry sources. The group also said gasoline stocks fell by 3.2 million barrels, while distillate supplies rose by 2.4 million barrels.
Later on Wednesday, the U.S. Department of Energy is expected to show a 1.286 million barrels drop in U.S. crude stocks, a fall of 443,000 barrels in distillates and a decline of 1.079 million barrels in gasoline supplies.
On the New York Mercantile Exchange, West Texas Intermediate crude oil for delivery in October traded at $93.84 a barrel, down 0.03%, after hitting an overnight session low of $93.34 a barrel and a high of $94.34 a barrel.
Brent oil fell 0.2% to $102.50 a barrel on ICE Futures Europe on Tuesday.
Overnight, crude prices rose after investors digested a mixed bag of U.S. indicators and determined the numbers reflected a more robust U.S. economy, though global supply concerns watered down gains.
The U.S. Commerce Department reported earlier that total durable goods orders, which include transportation items, surged by 22.6% last month, blowing past expectations for an increase of 7.5%.
Orders for durable goods in June were revised up to a 2.7% gain from a previously reported increase of 1.7%.
However, core durable goods orders, excluding volatile transportation items, contracted 0.8% in July, confounding forecasts for a 0.5% gain. Core durable goods orders rose by 3% in June.
Separately, the Conference Board reported that its widely-watched consumer confidence index rose to 92.4 for August, the highest since October 2007, from 90.3 in July, whose figure was revised down from a previously reported 90.9.
Analysts expected the index to decline to 89.0 in August, and the report kept oil in positive territory despite the mixed signals involving long-lasting manufactured items.
Geopolitical tensions gave oil modest support.
On Monday, Ukraine said an armored column including 10 tanks entered from Russia as the government in Moscow unveiled plans to send a second convoy with humanitarian aid.
Still, trading was choppy, as supplies have moved normally out of Russia as well as out of Iraq, Libya and other crude-rich hotspots.
Markets continue to move on concerns that despite a more robust U.S. economy, global oil supplies far outsize demand.