US crude and gasoline stockpiles rose unexpectedly last week, while distillate inventories drew, industry group the American Petroleum Institute said on Tuesday.
At the Multi Commodity Exchange, crude palm oil for delivery this month rose by Rs 1.60, or 0.28 per cent, to Rs 562.40 per 10 kg, in a business turnover of 121 lots.
Oil futures are down by another 1% in Asian trade on Wednesday, extending their overnight losses as the American Petroleum Institute's reading of weekly USA inventories showed a surprising build in both crude oil and gasoline. The API and EIA figures often diverge.
The IEA cut its oil demand growth forecast by 100,000 barrels per day (bpd) for this year and 2018, to an estimated 1.5 million bpd and 1.3 million bpd, respectively, as warmer temperatures were expected to weigh on consumption while rising output might add to glut in the crude supplies.
In May, Opec producers agreed to extend production cuts for a period of nine months until March, but stuck to production cuts of 1.2 million bpd agreed in November past year.