Oil prices edged lower on Tuesday ahead of an expected build in US crude oil stocks and on Venezuelan comments that the oil market remains oversupplied by 10%.
Analysts polled by Reuters expect US commercial crude oil inventories to have risen 2.3 million barrels in the week to Sept. 16, paving the way for a bearish market reaction because a rise in stocks indicates growing oversupply, Reuters reported.
International benchmark Brent crude oil futures traded at $45.58 per barrel, down 37 cents day on day. US West Texas Intermediate crude futures were down 33 cents at $42.97 a barrel.
Oil prices also reacted to comments made by Venezuela’s Oil Minister Eulogio Del Pino on Monday that global oil supply of 94 million barrels per day needs to fall by about a tenth if it is to match consumption.
Members of the Organization of Petroleum Exporting Countries and other oil producers are set to hold an informal gathering in Algiers next week, which the oil market hopes could lead to an agreement to freeze production levels.
Algeria’s Energy Minister Noureddine Bouterfa said on Tuesday he was optimistic participants would reach consensus on how to prop up the oil market.
“I would not be surprised to see some short-covering in the second half of this week just ahead of the informal OPEC meeting,” said Tamas Varga, lead oil analyst at London brokerage PVM Oil Associates.
Caption:
Brent traded at $45.58 per barrel.
