<div>Oil prices dipped on Wednesday, trading near six-year lows ahead of the latest US energy report after jitters over China's faltering economy spurred heavy losses this week, analysts said.</div><div> </div><div>US benchmark West Texas Intermediate for October delivery fell 13 cents to $39.18 in Asian trading, while Brent crude for October eased 13 cents to $43.08 in late-morning trade.</div><div> </div><div>Both contracts gained on bargain-hunting on Tuesday, after plummeting to their lowest levels since early 2009 a day earlier as investors fret about falling demand in the face of a world supply glut.</div><div> </div><div>"US crude inventories continue to be the weekly constant mover for oil prices in this period of stagnant fundamentals," said Daniel Ang, investment analyst at Phillip Futures in Singapore.</div><div> </div><div>"If inventories turn out lower than estimates, we may see prices get more support and vice versa," he added.</div><div> </div><div>Ang said China's rate cut prevented oil prices from finding a new low.</div><div> </div><div>ANZ said China's rate cuts had calmed commodity markets, but they remained cautious and gains would be limited.</div><div> </div><div>"The displacement of high-cost supply from the United States is taking much longer than expected, and it's likely to keep the market substantially oversupplied in the short term," it said.</div><div> </div><div>Industry group American Petroleum Institute reportedly said on Tuesday that US crude reserves shrank by 7.3 million barrels in the week to August 21.</div><div> </div><div>The numbers signalled healthy demand in the world's top crude consumer ahead of the more closely watched official stockpiles report from the US Energy Information Administration later on Wednesday.</div><div> </div><div>Oil prices have come under pressure from concerns that China's slowing economy will curb demand for the commodities that have helped feed its astonishing growth over the past three decades.</div><div> </div><div>The devaluation of the yuan two weeks ago fuelled economic fears, sparking a slump in world equities sending commodities, as measured by the Bloomberg Commodity Index of 22 raw materials, to a 16-year-low on Monday.</div><div> </div><div>Losses continued in Shanghai shares today, while other Asian markets were mixed, after China's central bank cut its benchmark lending and deposit interest rates in a bid to boost confidence.</div><div> </div><div>"Although this did not revive the markets, it did put a stop to the bleeding and markets remain quiet at the start of the day," Ang said.</div><div> </div><div>(Agencies)</div>
_20240527192124_original_image_21.webp)
