Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Oil declines ahead of API stockpile data as OPEC prepares to meet

Published 2017-05-23, 08:31 a/m
Updated 2017-05-23, 08:35 a/m
© Reuters.  Oil prices edge lower

Investing.com - Oil prices edged lower in North American trading on Tuesday, as investors looked ahead to weekly data from the U.S. on stockpiles of crude and refined products.

Industry group the American Petroleum Institute is due to release its weekly report at 4:30PM ET (20:30GMT) later on Tuesday.

Official data from the Energy Information Administration will be released Wednesday, amid forecasts for an oil-stock drop of around 2.7 million barrels.

The U.S. West Texas Intermediate crude July contract shed 5 cents, or around 0.1%, to $51.08 a barrel by 8:30AM ET (12:30GMT). The U.S. benchmark settled higher for the fourth straight session on Monday after hitting its strongest since April 19 at $51.43.

Elsewhere, Brent oil for July delivery on the ICE Futures Exchange in London dipped 7 cents to $53.81 a barrel, after climbing to its highest since April 19 at $54.37 in the prior session.

Oil's gains on Monday came amid growing expectations that OPEC members will extend supply cuts for a prolonged period when they meet later this week.

Oil ministers from the Organization of Petroleum Exporting Countries and other major producing countries will meet in Vienna on Thursday to decide whether to extend their current production agreement beyond a June 30-deadline.

In November last year, OPEC and 11 other non-OPEC producers, including Russia, agreed to cut output by about 1.8 million barrels per day between January 1 and June 30.

Most market analysts expect the oil cartel to extend output cuts for a further nine months until March 2018, instead of six months as previously expected.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

There is also talk that OPEC is looking at the option of deepening current production cuts, but it is not clear whether there would be support for that.

So far, the production-cut agreement has had little impact on global inventory levels due to rising supply from producers not participating in the accord, such as Libya, and a relentless increase in U.S. shale oil output.

Elsewhere on Nymex, gasoline futures for June inched down 0.2 cents, or 0.1%, to $1.657 a gallon, while June heating oil slipped 0.2 cents to $1.599 a gallon.

Natural gas futures for July delivery dropped 4.3 cents to $3.381 per million British thermal units.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.