On Wednesday, a ministerial monitoring committee consisting of OPEC members of Kuwait, Venezuela, Algeria and non-OPEC Russia and Oman will meet in the Austrian capital to discuss the progress of cuts in oil production and their impact on global oil supply. Saudi Arabia, which holds the current OPEC presidency, will also attend.
The U.S. Energy Information Administration will release its official weekly oil supplies report at 10:30AM ET (14:30GMT) Wednesday.
Analysts expect crude oil inventories to drop by around 2.4 million barrels at the end of last week, while gasoline inventories are expected to decrease by about 1.1 million barrels, and distillates are forecast to fall by 743,000 barrels.
After markets closed on Tuesday, the American Petroleum Institute said that U.S. oil inventories fell by a less-than-expected 1.5 million barrels in a week ended on May 19. The API report also showed a decline of 3.15 million barrels in gasoline stocks, while distillate stocks dropped by 1.85 million barrels.
Technically speaking, crude oil is trading higher, after making a low of $43.75 dated May, 5 2017. As per the Fibonacci projection zone, after gaining of $2.90 in the same day, crude oil opened for precalculated price zone of $51.50-51.90. Now a corrective reversal may be due.
