Oil prices tread water in Asian trade on Wednesday as uncertainty over U.S. trade policy and global economic growth kept traders negative on the outlook for demand, with weak Chinese manufacturing data adding to the mix.

Prices were headed for a steep monthly loss in April as fears of slowing demand and increased supplies battered oil markets through the month. Prices had also briefly hit a four-year low earlier in April.

Brent oil futures for June fell 0.1% to $64.18 a barrel, while West Texas Intermediate crude futures steadied at $60.30 a barrel by 22:01 ET (02:01 GMT).

Brent oil prices were set to lose about 14% in April, their worst monthly drop since November 2021, while WTI prices were trading down nearly 16% this month.

Oil was also pressured by industry data showing an outsized weekly build in U.S. inventories, which could signal rising supplies and sluggish demand.

Focus in the coming days will be on a meeting of the Organization of Petroleum Exporting Countries and allies (OPEC+), with the cartel widely expected to announce output hikes for June.

Russia-Ukraine ceasefire talks are also in focus, with any signs of progress likely to herald increased oil supplies. Russia announced a three-day ceasefire in early-May.
Data from the American Petroleum Institute showed on Tuesday that U.S. oil inventories grew 3.76 million barrels (mb) in the past week, substantially more than expectations for a build of about 0.39 mb.

The reading pushed up concerns that U.S. oil supplies remained high, while fuel demand in the country was softening amid heightened economic ructions.

The API data usually heralds a similar reading from government inventory data, which is due later on Wednesday.

Source: Investing.com