Oil prices fall over uncertainty on Opec output

Oil prices fall over uncertainty on Opec output

Oil prices fall over uncertainty on Opec output

The U.S. Energy Information Administration report on oil inventories is due to be released on Wednesday at 10:30 a.m. EDT-just one day prior to the OPEC meeting.

Gasoline futures ended near the day's lows following a bigger-than-expected rise in USA supplies of the fuel.

Oil prices slipped in Asian trade yesterday amid uncertainty over a possible extension of output cuts by major crude producers and expectations of higher supply as the Keystone pipeline restarts.

West Texas Intermediate (WTI) crude oil eased 32 cents, or 0.55 per cent to United States dollars 57.67 a barrel, while global benchmark Brent crude was down 43 cents, or 0.68 per cent to USD 63.18 per barrel.

Crude futures bounced around on the news, but as of 10:56 a.m. EST (1556 GMT), oil prices were marginally higher, with USA crude at $58.22 a barrel, up 23 cents on the day.

Oil traders have largely priced in a full nine-month extension of the current production agreement between OPEC and its non-OPEC allies, and ministers have done little to temper expectations.

Meanwhile, with a 65 cents rise from its preceding week, Organization of Petroleum Exporting Countries (OPEC)'s basket price stood at $60.94 per barrel in the mentioned week.

"A continued rise in US oil output not only contradicts the supply/demand argument behind the recent oil rally, but it also damages global producer sentiment as "OPEC and friends" are actively forfeiting market share with every weekly increase in USA output", said Tyler Richey, co-editor of the Sevens Report.

Gasoline stockpiles were up 3.6 million barrels for the week, while distillate stockpiles added 2.7 million barrels, according to the EIA. Refinery utilization rates rose by 1.3 percentage points.

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