Oil reverses higher as eyes focused on OPEC

2018-12-05 14:23:17 GMT (Economies.com)
Oil reverses higher as eyes focused on OPEC

Oil prices reversed higher in American trade after sustaining losses in Europe, as markets focus on OPEC's meeting in Vienna, expected to conclude with a new agreement to cut global output to support prices. 


As of 13:35 GMT, US crude rose to $53.20 a barrel, while Brent advanced to $61.80 a barrel. 


US crude lost 0.9% yesterday after marking two-week highs at $54.54 recently, while Brent fell 0.95% away from similar two-week highs at $63.56. 


OPEC is convening tomorrow Thursday in Vienna to discuss production policies and market developments with outside producers such as Russia. 


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. 


Goldman Sachs expects the meeting to result in an agreement to cut output by 1.3 million bpd into 2019. 


US Inventories 


In initial data, the American Petroleum Institute reported an inventory bump of 4.5 million barrels in US crude stocks in the week ending November 30, the second weekly addition in a row and above estimates of 2.3 million. 


Total stocks are up to 448.2 million barrels, the highest in 2018 and a negative sign for demand in the world's largest oil consumer.


Bank of America's analysts believe that most major economies around the globe will witness an economic slowdown next year despite the flurry of monetary and fiscal easing. 


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