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Oil rises before OPEC meeting, gains capped by oversupply concerns

Reuters  |  LONDON 

By Cooper

LONDON (Reuters) - rose 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.

Organization of the Petroleum Exporting Countries, and other producers meet in this week to discuss a potential cut in production, although it faces pressure from U.S. not to reduce output.

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

OPEC is keen to avert the kind of build-up in global that sent prices tumbling for more than a year and a half from late 2014. At the start of 2016, benchmark Brent was trading below $30 a barrel.

Brent crude futures were last up 16 cents on the day at $62.24 a barrel by 1500 GMT, but above a session low of $60.80, while U.S. futures were up 19 cents at $53.44.

Brent is still well below a peak in October above $86.

"Oil sentiment is very fragile given clear event risk at play," Harry Tchilinguirian, at told the Global Oil Forum.

"The optimism that emerged following the summit with some progress in U.S./trade relations and the announcements of cooperation ... gave way very quickly."

produced a record 11.3 million barrels per day (bpd) of crude in November, according to a source familiar with the matter.

That marks a rise from October's 10.65 million bpd, which, if confirmed, would mark the second-largest monthly increase since records began in 1997.

"OPEC's will-they-or-won't-they antics are keeping market players on the edge of their seats," said in a note. "There is a general consensus that the Saudis will have their work cut out to get to significantly trim supply."

An eleventh consecutive weekly build in U.S. crude inventories, the world's largest, has added to pressure on the prices.

and inventory data is due later on Thursday, delayed by one day. A survey forecast a decline of 900,000 barrels.

Asian gasoline refining margins have fallen to their lowest in seven years, as have European margins, meaning that processing it has become a loss-making business, a worry for both and producers

(Additional reporting by Henning Gloystein in SINGAPORE; Editing by and Edmund Blair)

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

First Published: Wed, December 05 2018. 20:48 IST