US crude prices drop on rising stockpiles

US crude oil prices fell in early Asian trading on Wednesday after industry data showed an increase in US stockpiles, while fears that Japan's economy may have fallen into recession added to demand woes.

Benchmark US crude futures slipped to a two-week low at $43.55 a barrel and were trading down over half a dollar from their last close at $43.68 by 0003 GMT.

The price drop came on the back of rising stocks in North America and slowing economies in Asia.

US crude stocks jumped by 6.3 million barrels in the week to November 6 to 486.1 million, data from industry group the American Petroleum Institute showed late on Tuesday, compared with analysts' expectations for an increase of 1 million barrels.

 

On the demand side, confidence among Japanese manufacturers fell in November for a third straight month to levels unseen in more than two years, a Reuters poll showed on Wednesday, reflecting fears that a China-led slowdown in overseas demand may have pushed Asia's second-biggest economy into recession.

"The weakness of global manufacturing activity is ... putting pressure on energy demand," JBC Energy said, adding that it expected a significant drop in oil demand growth in 2016.