Oil Lower as Over Supply and OPEC Concerns Linger

Oil prices slipped on Thursday as markets recovered from shock at U.S. President-elect Donald Trump’s surprise victory and focused on global oversupply as well whether OPEC will decide to cut production later this month.

Most markets shook off post-election losses and bounced back on Thursday, but oil still faces a glut that has kept prices under pressure for much of the past two years.

The Organization of the Petroleum Exporting Countries (OPEC) meets in Vienna on Nov. 30 for talks on output cuts. It has sought cooperation from non-members, including Russia, but doubts remain over whether they can come to an agreement.

Prices were down even as stockpiles at the U.S. delivery hub for crude futures in Cushing, Oklahoma, dropped by 663,916 barrels for the week, according to traders, citing energy monitoring service Genscape.

Brent crude fell 26 cents at $46.10 a barrel by 10:36 a.m. (1036 GMT). U.S. West Texas Intermediate crude was down 37 cents at $44.90.

“If no agreement is reached and some individual members continue to expand their production, then the market will remain in surplus throughout the year, with little prospect of oil prices rising significantly,” the International Energy Agency (IEA) said in its monthly report on Thursday.

via Reuters

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