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Oil edges higher before OPEC meeting

Reuters  |  NEW YORK 

By Stephanie Kelly

NEW YORK (Reuters) - prices inched higher on Wednesday ahead of a meeting of the world's biggest exporters who will discuss cutting output to help shore up prices and curb excess supply.

Brent crude futures rose 14 cents to $62.22 a barrel, by 11:56 a.m. EST (1656 GMT). U.S. Intermediate (WTI) crude futures rose 13 cents to $53.38 a barrel.

The Organization of the Petroleum Exporting Countries, and other producers will meet in this week to discuss a potential cut in production.

A monitoring committee of OPEC and its allies, including Russia, agreed on the need to cut output in 2019, two sources familiar with the discussions said, adding that volumes and the baseline for cuts were being debated.

"A deeper production cut still remains the most probable outcome of the meeting, but finer details of any agreement are in short supply, which in turn is prompting volatility," said Abhishek Kumar, analyst at Interfax in

Russian Minister told reporters he had a "good" meeting with his Saudi counterpart on Wednesday and they planned more talks.

Russia's No. 2 producer is ready to cut if OPEC and other leading producers agree to do so, though it would be technically difficult in winter, RIA agency quoted the company's as saying.

OPEC wants to avert a build-up in global like the one that sent prices from late 2014 into a prolonged slump that brought Brent to below $30 a barrel at the start of 2016.

"The market is expecting that OPEC is going to announce production cuts," said Mayor, global and at "There has been quite a lack of discipline of late. When you look at U.S. shale production and Saudi production and production, everyone has the pedal to the "

U.S. pressured OPEC not to reduce output.

"Hopefully OPEC will be keeping oil flows as is, not restricted. The World does not want to see, or need, higher oil prices!" Trump wrote on on Wednesday.

Saudi Arabian crude supply in November rose to 11.3 million barrels per day, a source familiar with the matter said.. That marks a rise from October's 10.65 million bpd.

U.S. crude inventories rose by 5.4 million barrels in the week to Nov. 30 to 448 million, data from industry group the showed on Tuesday.

inventory data is due on Thursday, delayed by one day. A survey forecast a decline of 900,000 barrels. [EIA/S]

(Additional reporting by Amanda Cooper in and Henning Gloystein in Singapore; Editing by David Evans, and David Gregorio)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, December 05 2018. 22:39 IST