Crude oil futures failed to hold early gains and settled flat on Thursday as traders awaited the outcome of the Organization of the Petroleum Exporting Countries (OPEC) meet in Vienna.
Thursday’s meeting will be followed by a meeting on Friday when Russia and other producers, a group known as OPEC+, will meet to consider production curbs.
Oil retreated from higher levels amid reports that a senior official from Saudi oil ministry denied pursuing a deeper round of production curbs.
According to reports, OPEC and allies led by Russia are planning to deepen output cuts to prevent oversupply.
Currently, the oil cartel is curbing supply by 1.2 million barrels per day. The existing curbs are set to expire in March. Now, the OPEC and allies are considering to deepen cuts by 500,000 barrels per day.
The cuts would last through the first quarter of 2020 as against calls for extending cuts until June or December 2020.
West Texas Intermediate Crude oil futures for January ended at $58.43 a barrel, unchanged from previous close.
On Wednesday, WTI Crude oil futures for January ended up $2.33, or 4.2%, at $58.43 a barrel, after data from Energy Information Administration (EIA) showed a steeper than expected weekly drop in crude oil inventories.
Data from EIA on Wednesday showed a steeper than expected weekly drop in crude oil inventories.
Crude oil inventories tumbled by 4.9 million barrels in the week ended November 29th compared to estimates for a decrease of about 1.7 million barrels, the data showed on Wednesday.
The material has been provided by InstaForex Company – www.instaforex.com