Oil prices were little changed on Wednesday in a volatile trading session, after jumping for awhile above $40.00 U.S. a barrel, the highest since March, then retreating as doubts emerged about the timing and scale of a potential extension to the pact between the Organization of the Petroleum Exporting Countries and its allies to cut crude supplies.
Saudi Arabia and Russia have a deal to extend oil output cuts by a month, but a policy meeting on Thursday rather than later in June is unlikely, sources said. Earlier in the session, oil fell when various media reported the Thursday meeting was in doubt.
Brent crude futures for August were down 10 cents, or 0.3%, at $39.45 U.S. per barrel. The session high of $40.53 was the highest since March 6. West Texas Intermediate crude for July gained 12 cents to trade at $36.93 per barrel.
Both benchmarks have surged in recent weeks, with Brent more than doubling after hitting a 21-year low below $16 in April, when U.S. crude turned negative.
The OPEC+ group, consisting of members and allies including Russia, is cutting output by 9.7 million barrels per day (bpd) in May and June, equal to about 10% of global output before the coronavirus crisis.
The talks have focused on keeping the current level of cuts beyond June. But a one-month extension would be shorter than some sources have said was under consideration.
Oil also weakened on reports that Gulf OPEC producers are not discussing extensions to their deeper voluntary production cuts beyond June.
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