Crude weaker in Asia after API figures, NKorea missile test - Sean Seshadri

Crude prices held weaker in Asia on Wednesday after industry estimates showed a sharp gain in U.S. inventories and investors showed caution after an apparent missile test by North Korea.

On the New York Mercantile Exchange crude futures for May delivery fell 0.19% to $48.15 a barrel, while on London's Intercontinental Exchange, Brent eased 0.20% to $50.86 a barrel.

Crude stocks rose by 4.53 million barrels at the end of last week, the American Petroleum Institute (API) reported on Tuesday, a larger than expected build, while gasoline inventories dropped by a more than expected 4.93 million barrels and distillates fell by 880,000 barrels.

Supplies at the oil hub of Cushing, Oklahoma, rose by 1.97 million barrels.

The figures were expected to show a crude stock build of 2.8 million barrels at the end of last week. Gasoline supplies are seen down 2.008 million barrels, while distillates likely declined by 1.386 million barrels. The API figures are followed on Wednesday by official data from the U.S. Energy Information Administration.

Crude after an apparent North Korea missile test that reports said failed.

Reuters, citing Yonhap news agency, reported the isolated nation in the Korean peninsula may have conducted a missile launch with a U.S. military spokesman adding that "a missile appears to have exploded within seconds of launch."

Overnight, crude settled lower on Tuesday, ahead of the API report and inventories from the Energy Information Administration (EIA) due to be released on Wednesday.

Meanwhile a slump in the dollar to six-week lows failed to lift dollar denominated crude – the US Dollar Index dipped below the 100 level and is on track for its fifth straight session of losses weighed by the Federal Reserve’s dovish outlook on rate hikes.

Elsewhere, investors disregarded a report from insider sources within OPEC, which suggested that OPEC oil producers increasingly favor extending its deal to cut oil production beyond June.

In November last year, OPEC and other producers, including Russia agreed to cut output by about 1.8 million barrels per day (bpd) in an effort to combat the oversupply issue that has pressured prices over the last two years.