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Oil Prices Extend Losses as Expectations for Deeper OPEC Cuts Fade

Published 23/10/2019, 10:46
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Investing.com - Oil prices extended losses on Wednesday as expectations for deeper output cuts by OPEC and its allies dimmed following comments by Russia’s energy minister, while data showing a larger-than-forecast inventory build also weighed.

West Texas Intermediate West Texas Intermediate crude futures fell 60 cents, or 1.1%, to $53.88 per barrel by 05:42 AM ET (09:42 GMT).

International benchmark Brent crude futures dropped 56 cents, or 0.9%, to $59.13 a barrel.

No formal proposals have been put forward to change the terms of a global deal on curbing oil supplies that was agreed between OPEC and its allies, Russian Energy Minister Alexander Novak said on Wednesday.

“There have been no formal proposals from anyone about changing the agreement,” Novak said, adding that all parties should fulfill commitments to the existing agreement “in full”.

Reuters reported Tuesday that Organization of the Petroleum Exporting Countries and other oil producers including Russia, a group known as OPEC+, would consider whether to deepen cuts when they meet in early December due to worries about weak demand growth in 2020.

"Crude oil prices jumped sharply (on Tuesday) on news that OPEC was considering further production cuts," ANZ Research said in a note, adding to earlier gains in the previous session as many companies posted improved outlooks.

Prices were also pressured after data from industry group the American Petroleum Institute late Tuesday showing that U.S. crude stocks rose by 4.5 million barrels to 437 million barrels in the week ended Oct. 18. Analysts had forecast a more modest gain of 2.2 million barrels.

Inventory data from the U.S. Energy Information Administration is due later in the trading day.

--Reuters contributed to this report

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