SULAIMANI (ESTA) — Oil prices edged lower on Wednesday, hit by a surprise build in oil inventories in the United States and as OPEC+ left markets in limbo by delaying a formal meeting to decide whether to increase output in January.
Brent crude oil futures were down by 31 cents at $47.11 a barrel by 0618, while West Texas Intermediate (WTI) crude fell 35 cents to $44.20.
Industry data from the American Petroleum Institute showed U.S. crude inventories rose by 4.1 million barrels last week, according to Reuters.
OPEC+ delayed talks output policy for next year until Thursday, Reuters cited three sources as saying, as key players were still in disagreement on how much oil they should pump amid weak demand.
The grouping, including the Organization of the Petroleum Exporting Countries (OPEC), Russia and other allies, had been scheduled to hold its meeting on Thursday after discussions of key ministers on Sunday failed to reach a consensus.
The group is due to ease current production cuts by 2 million barrels per day (bpd) from January, but with demand still under pressure from the pandemic, OPEC+ was considering extending current cuts into the first months of next year, a position backed by de facto OPEC leader Saudi Arabia, sources said.
“The risks of the OPEC+ alliance failing to reach an agreement are high,” ANZ analysts said in a note on Wednesday, Reuters reported.
“A resurgent virus has seen restrictions on travel increase across Europe and the U.S,” they said, adding the market surplus could be as high as 1.5 million to 3 million barrels per day in the first half of next year, if the group does not extend cuts.
