Oil Futures Dip as Focus Shifts to OPEC Monthly Report, U.S. Stockpile Data
Oil prices edged lower on Tuesday, as investors looked ahead towards Organization of Petroleum Exporting Countries’ monthly are accountable to assess global supply and demand levels.
The data will provide traders a better picture of whether a global rebalancing takes place in the oil market.
Market players will focus on weekly data from the U.S. on stockpiles of crude and delicate products to weigh exactly what the impact of contemporary storm activity was on demand and supply.
Industry group the American Petroleum Institute is because release its weekly report at 4:30PM ET (2030GMT).
Official data within the Energy Information Administration is going to be released Wednesday, amid forecasts for any oil-stock gain close to 2.3 million barrels.
U.S. West Texas Intermediate (WTI) crude futures shed 5 cents, or around 0.1%, to $48.02 a barrel by 3:15AM ET (0715GMT). The U.S. benchmark advanced 59 cents, or 1.2%, on Monday.
Meanwhile, Brent crude futures, the benchmark for oil prices beyond your U.S., dipped 7 cents to $53.77 a barrel. The worldwide benchmark inched up by 6 cents, or 0.1%, inside prior session.
Monday’s gains came as Hurricane Irma struck the U.S. southeast with less force than once feared, easing worries that energy demand will be hit hard.
Prices received additional support amid reports that Saudi Arabia’s oil minister discussed possibly extending a pact to trim down global oil supplies beyond March 2018 with his Venezuelan and Kazakh counterparts.
OPEC and various producers, including Russia, have wanted to reduce output by about 1.8 million barrels everyday until next March from a bid to relieve global oil inventories and support oil prices.
A further extension for a minimum of three more months beyond March is being discussed before OPEC meets again in November.
Elsewhere, gasoline futures declined 0.4 cents, or 0.3%, to $1.632 a gallon, while propane futures added 1.2 cents, or 0.4%, to $2.962 per million British thermal units.