(Adds details, settlement prices)
By Devika Krishna Kumar
NEW YORK, April 14 (Reuters) - Oil markets closed lower
after a choppy session on Thursday as the market processed a
mixed report from the International Energy Agency and skepticism
that an upcoming meeting of major producers would do much to
tighten the supply demand balance.
Activity in the market had been muted with no clear players,
traders said, due to the uncertainty ahead of a keenly
anticipated producers' meeting on Sunday in Doha, Qatar, of the
world's biggest oil exporters, including Saudi Arabia and
Russia.
They are set to finalize a deal reached in February to
freeze oil output at January levels, aiming to bolster oil
prices.
Brent crude futures LCOc1 settled down 34 cents at $43.84
a barrel while U.S. crude CLc1 ended the session down 26 cents
at $41.50.
"No real axe to grind today. I do believe tomorrow can be
busy ahead of the weekend," one trader said.
The IEA, which coordinates the energy policies of
industrialized nations, trimmed its estimate for 2016 global
demand growth from last month to 1.16 million barrels per day
(bpd), but said a much-anticipated slide in production in the
United States was gathering pace.
In its monthly report, the EIA said if there is a production
freeze, rather than a cut, the impact on physical oil supplies
will be limited.
Many analysts concur and think traders could be disappointed
after the meeting.
"I think the market is really looking ahead to Doha," said
Michael Tran, director of energy strategy at RBC Capital Markets
in New York.
"An agreement to freeze production does little to change
physical balances, but constructive rhetoric could serve as a
sentiment changer at a minimum, helping to legitimize the
current rally and have the market hold the $40 a barrel level as
the new psychological floor."
Oil found some support after U.S. economic data pushed the
dollar to session lows. A weaker dollar is a plus for oil,
making it more affordable to holders of other currencies. FRX/
In the previous session, oil fell after Russian oil minister
Alexander Novak told a closed-door briefing of energy analysts
in Moscow that a deal in Doha would be loosely framed with few
detailed commitments.
"The agreement will not be very rigidly formulated, it is
more of a gentlemen's agreement," one of those present said,
paraphrasing Novak's words at the briefing.
"There is no plan to sign binding documents," another person
at the briefing said.
Barclays (LON:BARC) said in a research note, however, that some bullish
outcome was likely "simply because" the market has very low
expectations from the meeting.
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CHART-Brent forward curve http://tmsnrt.rs/1VmLW1G
CHART-Brent 2015 vs 2016 prices http://tmsnrt.rs/1VmMqos
CHART-Put open interest at $30 http://tmsnrt.rs/1Npbunb
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