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Oil falls amid stock market slide, but market eyes OPEC meeting

Reuters  |  SINGAPORE 

By Gloystein

SINGAPORE (Reuters) - fell along with weak stock markets on Thursday, but trading was tepid ahead of a meeting by group that is expected to result in a supply cut aimed at draining a glut that has pulled down crude prices by 30 percent since October.

International Brent futures were at $61.04 per barrel at 0531 GMT, down 52 cents, or 0.8 percent from their last close.

U.S. Intermediate (WTI) crude futures were at $52.38 per barrel, down 51 cents, or 1 percent.

Traders said were being weighed down by weak global financial markets, which saw stock markets tumble on Thursday.

Since early October, has lost around 30 percent of its value amid surging supply and fears that an economic downturn will erode fuel demand.

"A massive liquidation in long positions by money managers has dampened market confidence on considerably," said of Singaporean brokerage

The (OPEC) is meeting at its headquarters in Vienna, Austria, on Thursday to decide its production policy.

Led by Saudi Arabia, OPEC's production has risen by 4.1 percent since mid-2018, to 33.31 million barrels per day (bpd).

from the world's biggest producers - OPEC, and the - has increased by a 3.3 million bpd since the end of 2017, to 56.38 million bpd, meeting almost 60 percent of global consumption.

The increase alone is equivalent to the output of

Russia, a oil but not a member of OPEC, will meet with the producer cartel on Friday to discuss production levels, and it is widely expected that a supply cut will be agreed.

"Markets...believe the production cut deal will be in range of 1-1.3 million bpd," said on Thursday.

(Reporting by Gloystein; Editing by and Joseph Radford)

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

First Published: Thu, December 06 2018. 11:14 IST
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