Crude oil prices nudged up during North America’s Wednesday session as investors turned their attention to weekly figures on US supply of crude and refined products.
The American Petroleum Institute is set to post its weekly report at 20:30 GMT later in the session. Meanwhile, the official data from the Energy Information Administration will be announced tomorrow.
Earlier today, oil recovered as market players continued to weigh the odds of a freeze output in the Organization of the Petroleum Exporting Countries (OPEC) conference set later this September in Algeria.
OPEC is spearheaded by Saudi Arabia and other key Middle East crude exporters. The informal meeting will involve the OPEC members and non-OPEC producers led by Russia between September 26 and 28.
As of 13:30 GMT, London Brent futures for November delivery climbed 0.34% to trade at $47.43 a barrel. October delivery of crude oil on the NYMEX, meanwhile, tacked on 0.42% to $45.02 a barrel.
However, crude oil already dipped by 14:30 GMT, further falling off Monday’s rally. Crude spiked sharply on Monday after Saudi Arabia and Russia vowed to work together to support the oil market, but prices quickly declined as the pact ceased to deliver imminent action to solve the oil glut.
Prices were eyed to climb on Tuesday after Iranian Oil Minister Bijan Zanganeh met OPEC Secretary-General Mohammed Barkindo in Tehran, and claimed he would support any action to normalize prices at an estimated $50-60 a barrel.
However, the remarks did little to lift crude oil, as seen on the chart. According to market experts, prospects that the upcoming meeting would bear any action to decrease the supply glut were quite minimal.
Most believe that crude oil producers will continue to watch the market and possibly delay freeze discussions to the official OPEC meeting in Vienna on November 30.
The rally today was short-lived, and all indicators were pointing for a southern momentum for crude oil. Definitely, the bears will linger for another long while.
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