Petroleum prices extended losses on Wednesday, hit by a surprise build in oil inventories in the United States and as the Organization of the Petroleum Exporting Countries and its allies left markets in limbo by delaying a formal meeting to decide whether to increase output in January.
Brent crude oil futures were down by 14 cents, or 0.3%, at $47.27 U.S. a barrel mid-morning Wednesday, while West Texas Intermediate crude was down by 17 cents, or 0.38%, at $44.38 U.S.
Industry data from the American Petroleum Institute showed U.S. crude inventories rose by 4.1 million barrels last week, compared with analysts’ expectations in a Reuters poll for a draw of 2.4 million barrels.
Sources said the figures were released after OPEC, Russia and other allies, a group known as OPEC+, postponed talks on next year’s oil output policy to Thursday from Tuesday.
Earlier this year the group imposed production cuts of 7.7 million barrels per day (bpd) as the coronavirus pandemic cut into fuel demand. It had been widely expected to roll those reductions over into January-March 2021 amid spikes in Covid-19 cases.
But the United Arab Emirates UAE said this week that even though it could support a rollover, it would struggle to continue with the same deep output reductions into 2021.
Meanwhile non-OPEC+ member Norway’s oil output curbs, in place since June, are set to end on Dec. 31, which could further dent prices.
