Oil prices were little changed in Asian trade on Wednesday, as a draw in U.S. crude inventories helped stabilize markets after two days of sharp losses fueled by speculation that OPEC+ could raise output again in November.
As of 21:48 ET (01:48 GMT), Brent Oil Futures expiring in December edged 0.2% higher to $66.15 per barrel, while West Texas Intermediate (WTI) crude futures gained 0.1% to $62.46 per barrel.
Both benchmarks have fallen more than 4% in the past two sessions, pressured by reports that the producer group may opt for a larger supply increase at its meeting next week.
US crude stockpiles decline for 3rd straight week - API
The American Petroleum Institute (API) said late Tuesday that U.S. crude stocks fell by 3.67 million barrels in the week to Sept. 26. This marked the third consecutive weekly decline, signalling modest demand and tightness in U.S. supply.
Gasoline and distillate inventories increased by 1.3 million barrels and 3 million barrels, respectively.
“Numbers overnight from the American Petroleum Institute were somewhat supportive for crude oil and bearish for refined products,” ING analysts said in a note.
The official inventory report from the U.S. Energy Information Administration is due later Wednesday.
Traders await OPEC+ meeting to assess supply outlook
Market focus remained squarely on the Oct. 5 OPEC+ meeting, where producers will decide output levels for November.
Media reports on Tuesday showed that the group is considering an increase of as much as 411,000 barrels per day (bpd), well above the 137,000 bpd already scheduled for October.
Some reports stated that OPEC+ was considering accelerating its increases by 500,000 bpd in November.
The cartel, in a social media post, dismissed media reports of a planned 500,000 bpd output hike as inaccurate and misleading.
Analysts expect the market to move into a large surplus in the fourth quarter and remain in surplus through 2026, putting significant pressure on oil prices over the course of next year.
Source :
https://www.investing.com/news/commodities-news/oil-prices-steady-after-sharp-losses-traders-weigh-us-stock-draw-opec-supply-4264926
