SINGAPORE (Reuters) – Oil markets had been tepid on Monday as merchants had been reluctant to tackle huge new positions forward of an OPEC assembly on the finish of the month, when the producer membership is predicted to resolve whether or not to proceed output cuts geared toward propping up costs.
Brent crude futures LCOc1, the worldwide benchmark for oil costs, had been at $62.60 per barrel at 0348 GMT, down 12 cents, or zero.2 p.c, from their final shut.
U.S. West Texas Intermediate (WTI) crude futures had been at $56.63 a barrel, up eight cents, or zero.1 p.c, from their final settlement.
Merchants stated they had been avoiding taking over massive new positions because of uncertainty in markets.
The Group of the Petroleum Exporting Nations (OPEC), along with a gaggle of non-OPEC producers led by Russia, has been restraining output for the reason that begin of this 12 months in a bid to finish a worldwide provide overhang and buoy costs.
The deal to curb output is because of expire in March 2018, however OPEC will meet on Nov. 30 to debate the outlook for the coverage.
OPEC is predicted to agree a cut-extension as storage ranges stay excessive regardless of current drawdowns, though there are doubts concerning the willingness of some members to proceed to crimp manufacturing.
“(The) OPEC assembly stays the important thing sector catalyst into year-end … The market expectation is for an extension via 2018, created by OPEC feedback early this fall … (however) there’s elevated threat that OPEC delays the extension choice,” U.S. financial institution Morgan Stanley stated on Monday in a be aware to shoppers.
Morgan Stanley stated that the query over prolonged cuts “has shifted to non-OPEC members’ willingness to increase, primarily Russia”.
Regardless of this, Greg McKenna of futures brokerage AxiTrader stated it was “price noting information confirmed extra longs added by the speculative group”, indicating expectations of rising costs.
Reporting by Henning Gloystein; Modifying by Joseph Radford
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