Marketmen said trading sentiment dampened after oil prices eased in global market, weighed down by uncertainty over the outcome of an OPEC meeting this week at which an extension to its price-supporting oil output cuts will be discussed.
Brent crude futures fell by 0.69 percent to $63.17 per barrel, meanwhile U.S. West Texas Intermediate (WTI) crude futures dropped by 0.31 percent to $57.68 per barrel. Visit MarketWatch.com for more information on this news.
Oil traders have largely priced in a full nine-month extension of the current production agreement between OPEC and its non-OPEC allies, and ministers have done little to temper expectations.
Crude inventories fell 3.4 million barrels in the week to November 24, compared with analysts' expectations in a Reuters poll for a decrease of 2.3 million barrels.
Gasoline stocks rose 3.6 million barrels, compared with forecasts for a 1.2 million-barrel gain.
The net long position held by hedge funds and other money managers in the five main petroleum futures and options contracts covering crude and fuels were cut to 1,092 million barrels from a record 1,120 million on November 14. "This, in combination with lower imports to the Midwest-due to the Keystone pipeline outage-and lower waterborne imports has encouraged a decent draw to crude stocks". That was the largest weekly average, based on EIA data dating back to 1983 (https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=WCRFPUS2&f=W). "So, bottom line, rising US oil production is a lose-lose for oil prices".
According to OPEC's latest estimations, oil demand is going to rise to 33.420 million bpd in 2018, 360,000 bpd more than the organization's last forecast. December heating oil ended down 1.5% at $1.922 a gallon.