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Oil firms on drop in US crude stocks, market awaits OPEC/Russia supply decision

Reuters  |  SINGAPORE 

By Henning Gloystein

SINGAPORE (Reuters) - U.S. stabilised on Friday, buoyed by a fall in U.S. crude oil inventories, but sentiment remained weak as group postponed a final decision on output cuts, awaiting support from non-heavyweight

U.S. Intermediate (WTI) crude futures were at $51.61 per barrel at 0037 GMT, 12 cents above their last close.

WTI was supported by drop in U.S. commercial crude inventories , which fell by 7.3 million barrels in the week to Nov. 30, to 443.16 million barrels

International oil futures had yet to trade.

The stabilising prices came after crude slumped by almost 3 percent the previous day, with the Organisation of the Exporting Countries (OPEC) ending a meeting at its headquarters in Vienna, Austria, on Thursday without announcing a decision to cut crude supply, instead preparing to debate the matter on Friday.

Analysts still expect some form of supply reduction to be decided.

"We are beginning to witness the outline of the next iteration of production cuts, with conforming to cut its own production by around 1 million barrels per day, with the cartel lobbying non-OPEC members to contribute more," Japan's said in a note.

have been hit by a 30-percent plunge in crude prices since October as supply surges just as the demand outlook weakens amid a global economic slowdown.

from the world's biggest producers - OPEC, and the - has increased by 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 OPEC the

Graphic: OPEC, & U.S. (https://tmsnrt.rs/2QczFSp)

(Reporting by Henning Gloystein; Editing by Joseph Radford)

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

First Published: Fri, December 07 2018. 06:38 IST
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