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Oil turns lower as focus shifts to U.S. stockpile data

Published 2016-10-25, 09:41 a/m
© Reuters.  Oil under pressure as focus shifts to U.S. stockpile data
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Investing.com - Oil prices were under pressure in North American trade on Tuesday, reversing earlier gains as fading expectations of a coordinated production cut among major global oil producers and a stronger U.S. dollar weighed.

Brent oil for December delivery on the ICE Futures Exchange in London slipped 39 cents, or 0.76%, to $51.07 a barrel by 9:40AM ET (13:40GMT).

On Monday, the contract lost 32 cents, or 0.62%, after Iraq said it wanted to be exempt from any output freeze deal among major global producers.

Iraq is the second biggest producer in OPEC after Saudi Arabia. The country pumped 4.78 million barrels last month, according to its own reporting.

Global oil prices have been under pressure in recent days amid market skepticism over the implementation of a planned deal by OPEC to limit production.

The 14-member oil group reached an agreement to cap output to a range of 32.5 million to 33.0 million barrels per day in talks held on the sidelines of an energy conference in Algeria late last month.

However, OPEC said it won’t finalize details on individual output quotas until its next official meeting in Vienna on November 30, when an invitation to join the deal could also be extended to non-OPEC countries such as Russia.

Elsewhere, crude oil for December delivery on the New York Mercantile Exchange declined 30 cents, or 0.59%, to $50.22 a barrel, after falling 33 cents, or 0.65%, a day earlier.

Market players shifted their focus 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 increase of 0.8 million barrels.

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