Oil prices fell at the European market on Wednesday to assume incurring losses for the third consecutive day, after an unexpected rise in crude stocks in the United States, according to data released by the Institute of Petroleum. Traders outlook data expected to be released by the US Energy Information Administration later today. Oil markets await the outputs of OPEC meeting, planned to be held tomorrow; Thursday, in Vienna, which is expected to approve the extension of the global production reducing agreement till the end of 2018.
By 09:35 GMT, US crude declined to $ 57.65 a barrel from the opening level of $ 57.72, recording a high of $ 57.80 and a low of $ 57.60.
Brent crude declined to $ 62.85 per barrel from the opening level of $ 63.33, recording a high of $ 63.38 and a low of $ 62.74.
US crude oil declined by 0.2% at yesterday’s settlement. Brent futures fell by 0.6% in the second consecutive daily loss, driven by concerns about the outcomes of the OPEC meeting.
In the United States, the US Petroleum Institute announced yesterday that crude inventories in the country had risen by 1.8 million barrels for the week ended on November 24, despite the expectations of a decline of 2.1 million barrels.
Traders are looking ahead to the release of official data by the US Energy Information Administration, with expectations of a decline of 2.5 million barrels, in a second consecutive weekly decline.
On the other hand, media sources mentioned that the Joint Technical Committee constituted between OPEC and independent producers, recommended the extension of the global oil-production reduction agreement until the end of 2018, with the possibility of reviewing the agreement in the next June.
The Organization of the Petroleum Exporting Countries (OPEC) has planned to have a meet at ministerial level tomorrow – Thursday – in Vienna, to discuss market updates, set the production policy, and announce the resolution on the global oil-production reduction agreement.
OPEC currently executes a global agreement with the independent producers to reduce the market supply by 1.8 million barrels per day, the agreement will terminate in March 2018.
Most expectations indicate that OPEC will extend the agreement for a further nine month term until December 2018, knowing that the global stocks are still above the average of five year curve, besides the rise in oil production in the United States to new record highs.