This Reuters market report said oil prices were steady in Asian trading as hopes of an OPEC-led supply cut were offset by a softer economic outlook and rising U.S. output.
U.S. West Texas Intermediate crude futures were at $57.14 a barrel at 0250 GMT, 6 cents below the previous settlement. Brent crude stood at $66.75 a barrel, down 4 cents from its last close.
The Organization of the Petroleum Exporting Countries was pushing for a reduction of between 1 million and 1.4 million barrels per day. That effort came as markets increasingly expected slower global growth to weigh on fuel demand.
French bank BNP Paribas said it expected OPEC to approve a cut at its next official meeting on 6 December. The bank also forecast Brent could return to $80 a barrel before year-end and said it saw 2019 averages of $69 for WTI and $76 for Brent.
The International Energy Agency warned on Monday of the “negative implications” of supply cuts, reflecting concern among consumers and analysts that a jump in crude prices could hurt consumption.
Outside OPEC, sanctions waivers granted by Washington to many of Iran’s biggest customers were also shaping the market. Japan and South Korea were looking to resume Iranian oil imports from January under those exemptions.
U.S. production added another layer of pressure. Output had risen by almost a quarter in 2018 to a record 11.7 million barrels per day, reinforcing fears that shale growth could overwhelm restraint from other producers.
Investor positioning showed how defensive the market had become. Portfolio managers sold the equivalent of 553 million barrels of crude and fuels over the previous seven weeks, the largest reduction over a comparable period since at least 2013.
Net long holdings fell to 547 million barrels, less than half the 1.1 billion barrels held at the end of September and well below the record 1.484 billion reached in January.
Why traders stayed cautious ¶
Crude prices were still almost a quarter below their early October highs, with supply growth and weakening demand expectations weighing on sentiment. Reuters said traders saw further downside risk from U.S. shale expansion and the deteriorating global economy.
Reporting by Henning Gloystein; Editing by Kenneth Maxwell.
