The expected US Crude Oil Inventories gain drags the oil prices down, as investors also await the OPEC next meeting in Vienna on the 30th of November. Will the deal be concluded?
2 November, AtoZForex – Crude-oil futures dropped in early Asian trade on Wednesday, as markets anticipate the gain in the US crude inventories.
US Crude Oil Inventories gain
December light, sweet crude futures on the New York Mercantile Exchange were changing hands at $46.30 per barrel, dropping 0.8 percent in the Globex electronic session. Brent crude for delivery in January on London’s ICE Futures Exchange slid to $47.85 a barrel down 0.29 cents.
The US crude stockpiles have appeared 9.3 million barrels higher last week, as it is reported by the industry group American Petroleum Institute. Such growth could signal the biggest one-week growth since March. Market experts refer to the low refinery utilization and firm imports as the main causes for such growth.
According to the Energy Information Administration (EIA), at the level of 468.2 million barrels, the US crude oil stockpiles are currently above the 448 million barrels inventories at this time in 2015. The API has also dropped 3.6 million barrels in gasoline stocks and 3.1 million barrels in distillate inventories. Citi Futures analyst, Tim Evans, has stated:
“The overall impact may be cushioned by larger-than-expected draws in the products.”
OPEC oil cut deal: what are the odds?
The oil prices have been diminishing for three consecutive sessions as of now, being broadly affected by the doubts about the oil cut deal by the Organization of the Petroleum Exporting Countries (OPEC). The initial proposition to cap the oil production took place this September, as OPEC members agreed to discuss the possibility of limiting the oil output by 200,000 to 700,000 barrels a day.
Such move drove the oil prices up, but later, as more and more OPEC and non-OPEC producers showed their unwillingness to cut the output, the prices began to slide. Currently, the markets await the next meeting of OPEC, which is taking place on the 30th of November in Vienna.
Yesterday, oil prices gained from one-month low in Asian trading session on Tuesday as OPEC approved their long-term plan, which was before seen as a potential signal that the bloc was reaching the agreement on capping the oil output.
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