Oil prices have slipped ahead of OPEC meeting in Vienna to discuss on output cuts, reducing sharp increases made in the earlier session.
Brent crude futures were down $0.10 to $62.90 a barrel, while West Texas Intermediate (WTI) crude futures dipped $0.22 to $58.21 a barrel, reported Reuters. Investors are currently focusing on the OPEC+ meeting with regard to output cuts to balance the oil market.
US President Donald Trump said that trade talks with China are progressing “very well” and further added that interim deal could take after completion of presidential election.
The OPEC+ alliance, which has been cutting output since 2017, is expected to maintain the cuts to balance record production in the US. The oil cartel has been withholding about 1.2 million barrels per day (Mbpd) of production since then.
It aims to further deepen the cuts but needs the agreement of Russia and other oil producers to avoid oversupply in 2020.
Capital Economics assistant economist Franziska Palmas was quoted by Reuters as saying: “Saudi Arabia’s concerns about its loss of market share and little appetite for increased cuts in Russia, will win the day.
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“Accordingly, we expect OPEC+ to only roll over its current production quota at this week’s meeting.”
According to official data released by the Energy Information Administration (EIA), crude inventories declined by 4.9 million barrels last week. This is against a 1.9 million-barrel decline expected in a poll by Reuters.
Meanwhile, gasoline stocks increased by 3.4 million barrels and distillate inventories also gained 3.1 million barrels.