Oil futures fell over three percent in American trade with US crude and Brent falling off November 22 highs, shrugging off a steep decline in US crude stocks, which snapped the longest stretch of inventory buildup since mid-2015. 

OPEC's official meeting in Vienna was wrapped up without a final deal to extend output cuts into 2019, confounding market expectations of a deal to cut output by 500 thousand to 1.5 million bpd, with negotiations expected to continue tomorrow. 

As of 07:05 GMT, US crude futures due in January fell 3.18% to $51.21 a barrel, while Brent February futures slumped 3.25% to $59.56 a barrel, as the dollar index dropped 0.37% to 96.71 off week highs. 

Saudi oil minister Khalid Al Falih said the current option is to cut output by one million bpd, adding he hopes Russia to contribute as much as possible into production cuts, while expressing confidence in reaching a deal tomorrow. 

Russian energy minister said Russia couldn't output in Winter more than other countries due to climactic and geological reasons, adding they will focus on actual indicators in the markets when reaching a final decision rather than tweets. 

US Inventory Decline

The Energy Information Administration reported a US crude inventory deficit of 7.3 million barrels in the week ending November 30, considerably past estimates of a 1.3 million decline, with total stocks now down to 443.2 million barrels, still 6% above five-year averages. 

Gasoline stocks are up 1.7 million barrels, making them 4% above averages, while distillate stocks, including heating fuel, rose 3.8 million barrels, still 5% below averages.

US Data 

The US private sector added 179 thousand in November, missing estimates of 195K, and compared to 225K in October, revised from 227K. 

US productivity rose 2.3% as expected, up from 0.9% in the second quarter, while labor costs rose 0.9%, slowing down from 1% in the second quarter. 

US trade deficit widened to $55.5 billion from $54.6 in September, missing estimates of $55.2 billion, while unemployment claims fell by 4 thousand in the week ending December 1 to 231K. 

Continuing claims for the week ending November 24 fell 74 thousand to 1.631 million.

The US services PMI rose to 60.7 in November from 60.3 in October, besting estimates of 59.1. 

Two thirds of American GDP relies on services, hence the vital importance of services PMIs to markets. 

Finally, factory orders fell 2.1% in October, compared to a 0.2% increase in September, and missing estimates of a 1.9% increase. 

Iran Sanctions 

Otherwise, as US sanctions went into effect on Iranian oil exports starting November 4, eight countries were granted waivers for 180 days, mainly China, India, South Korea, Japan, Italy, Greece, Taiwan, and Turkey, already the largest importers of Iranian oil. 

Prices hit 13-month lows recently on renewed concerns over a supply glut as global producers pump record amounts of crude while global demand weakens. 

Sterling rose in American trade off June 2017 lows versus the greenback, following earlier data from the US today and amid a lack thereof from Britain. 

As of 05:46 GMT, GBP/USD rose 0.45% to 1.2791, with an intraday high at 1.2812, and a low at 1.2700. 

UK Prime Minister Theresa May ruled out a delay in the Parliament's vote on the Brexit agreement, adding that the only options are either accepting this plan or heading for an unorganized and risky Brexit. 

US Data 

The US private sector added 179 thousand in November, missing estimates of 195K, and compared to 225K in October, revised from 227K. 

US productivity rose 2.3% as expected, up from 0.9% in the second quarter, while labor costs rose 0.9%, slowing down from 1% in the second quarter. 

US trade deficit widened to $55.5 billion from $54.6 in September, missing estimates of $55.2 billion, while unemployment claims fell by 4 thousand in the week ending December 1 to 231K. 

Continuing claims for the week ending November 24 fell 74 thousand to 1.631 million.

The US services PMI rose to 60.7 in November from 60.3 in October, besting estimates of 59.1. 

Two thirds of American GDP relies on services, hence the vital importance of services PMIs to markets. 

Finally, factory orders fell 2.1% in October, compared to a 0.2% increase in September, and missing estimates of a 1.9% increase. 

Euro rose in American trade off late November lows against the dollar, following earlier data from the euro zone and the US today. 

As of 05:19 GMT EUR/USD rose 0.28% to 1.1376, with a session-high at 1.1413, and a low at 1.1321.

Earlier German data showed factory orders rose 0.3%, compared to a 0.1% increase in September, and beating estimates of a 0.4% drop. 

EU Chief Brexit negotiator Michel Barnier said in earlier remarks that the offer presented to Britain is unmatched, as it contains damage to both sides, with the approval of the British Parliament the only thing now standing before defining the future relationship between the EU and Britain. 

Moving to Italy, Prime Minister Giuseppe Conte said government meetings have been held to discuss the budget, adding to agreement has been reached yet on cutting reform, with his deputies refusing to cut the budget deficit below 2%, even though he seeks a 1.9% target for the deficit in accordance with EU rules. 

US Data 

The US private sector added 179 thousand in November, missing estimates of 195K, and compared to 225K in October, revised from 227K. 

US productivity rose 2.3% as expected, up from 0.9% in the second quarter, while labor costs rose 0.9%, slowing down from 1% in the second quarter. 

US trade deficit widened to $55.5 billion from $54.6 in September, missing estimates of $55.2 billion, while unemployment claims fell by 4 thousand in the week ending December 1 to 231K. 

Continuing claims for the week ending November 24 fell 74 thousand to 1.631 million.

The US services PMI rose to 60.7 in November from 60.3 in October, besting estimates of 59.1. 

Two thirds of American GDP relies on services, hence the vital importance of services PMIs to markets. 

Finally, factory orders fell 2.1% in October, compared to a 0.2% increase in September, and missing estimates of a 1.9% increase. 

The Energy Information Administration reported a US crude inventory deficit of 7.3 million barrels in the week ending November 30, considerably past estimates of a 1.3 million decline, with total stocks now down to 443.2 million barrels, still 6% above five-year averages. 

Gasoline stocks are up 1.7 million barrels, making them 4% above averages, while distillate stocks, including heating fuel, rose 3.8 million barrels, still 5% below averages.