Oil steady as storm jitters offset US inventory drop

Oil prices hold steady as the fact that US inventories fell much more than expected, leading to an increase in oil prices, offset fears about a significant snowstorm, worsening the demand outlook. 

According to the American Petroleum Institute,  US oil stocks fell about 3 million barrels. The official data on crude oil inventories is also likely to point to a drop later in the day.

On the other hand, residents’ appetite for travel during the year-end holiday season could be decreased on the news about the upcoming massive storm in the midwestern United States. This, in turn, could lower fuel demand. 

Uncertainty over China's economic outlook is also expected to affect crude oil prices in the near-term.