Oil prices were little changed on Wednesday (November 5) as investors digested weaker economic data from major oil-importing countries and US inventories indicating stronger fuel demand, while a stronger US dollar weighed on prices.

Brent crude futures edged up 9 cents, or 0.14%, to $64.53 a barrel at 09:00 GMT, after hitting a near two-week low in the previous session. US West Texas Intermediate crude also rose 9 cents, or 0.15%, to $60.65.

The weaker economic data coupled with a rally in the US dollar prevented oil from making significant gains, while prices found support from refined products amid falling US stockpiles, said PVM analyst Tamas Varga.

Chinese factory activity shrank for a seventh straight month in October, while US manufacturing contracted for an eighth straight month in October. The US dollar index, which measures the currency against the euro, sterling, and other currencies, reached a three-month high, boosted by a split on the Federal Reserve board, which indicated a lower chance of a December interest rate cut.

A stronger US dollar makes dollar-denominated oil more expensive for holders of other currencies, which can impact demand. Lower US interest rates typically boost demand.

Investors are also assessing US data, as crude oil stockpiles rose while gasoline and distillate inventories fell in the week ending October 31, sources said, citing figures from the American Petroleum Institute on Tuesday.

Supply-side concerns continue to weigh on prices. The Organization of the Petroleum Exporting Countries and allied producers, known as OPEC+, agreed on Sunday to increase production by 137,000 barrels per day in December. The group decided to halt further increases in the first quarter of 2026.

Western sanctions against Russia and Iran have resulted in record volumes of oil being stored in floating storage, preventing a global oversupply, the CEO of Gunvor Group, a Swiss-based commodities trading firm, said on Wednesday. (alg)

Source: Reuters