Investing.com - Crude oil eased in Asia on Wednesday as disappointing US industry inventory estimates dampened sentiment and as attention turns to an OPEC meeting in Vienna on output curb extensions.
On the New York Mercantile Exchange crude futures for January delivery fell 0.10% to $57.67 a barrel, while on London's Intercontinental Exchange, Brent edged down 0.02% to $62.99 a barrel.
US crude stocks rose by 1.821 million barrels, the American Petroleum Institute (API) reported Tuesday, with gasoline supplies down by 1.529 million barrels and distillates up by 2.696 million barrels.
Supplies at the oil storage hub at Cushing, Oklahoma, fell by 3.178 million barrels
The figures are followed by official data from the Energy Information Administration (EIA) on Wednesday.
Analysts expected crude oil stocks down 2.301 million barrels art the end of last week. Distillate stocks were seen up by 230,000 barrels. Gasoline inventories were seen up by 1.199 million barrels.
Overnight, crude oil prices settled lower on Tuesday amid ongoing investor uncertainty concerning the outcome of the OPEC meeting this week amid reports suggesting Russia is reluctant to join in extending output curbs beyond March.
Crude oil added to losses from Monday, as investors continued to fret over outcome of the OPEC meeting slated for Thursday at which the oil-cartel is expected to extend the production-cut agreement beyond March.
Market talk is that an OPEC and non-OPEC technical committee is fine with an initial six-month extension beyond March 2018 of oil output curbs with an option to go another three months depending on market conditions - but are concerned about the market reaction.
Russian oil firms reportedly want the six-month period - though politically - Saudi Arabia holds important sway with Russian Energy Minister Alexander Novak and President Vladimir Putin.
The Saudi oil minister Khalid al Falih hinted that companies and countries are not always aligned - a reference to the fight for market share - particularly in Asia between state-owned producers and private firms.
However, sources say that Russia may reluctantly go for nine months to assure Saudi interests that IPO plans for Aramco and massive economic restructuring do not face new headwinds.
Analysts at Goldman Sachs (NYSE:GS) Commodity research, however, expect OPEC to extend output cuts by nine months and warned of downside risks to oil prices should OPEC fail to deliver the extension. The bank said Brent oil prices reflected a $2.5/bbl “nine month extension” premium.
In May, OPEC producers agreed to extend production cuts for a period of nine months until March, but stuck to production cuts of 1.2 million bpd agreed in November last year.