Brent oil is heading for its biggest weekly loss in almost 10 months after giving up all its gains since OPEC agreed to trim output as scepticism grows over implementing the deal.
The oil market is also being roiled by report of rising US inventories worsen a glut … despite news yesterday that recent Nigerian attacks removed 200kbd output and comments that OPEC is “deeply optimistic” for an output cut.
Yesterday, Brent hit a session low of 45.99$/BBL.
Prices were also pressured as US equities fell, with the S&P 500 stock index headed for its longest losing streak since the 2008 financial crisis.
Traders said energy monitoring service Genscape reported a weekly build of +1.2 million barrels at the US delivery base in Cushing, Oklahoma.
That kept a lid on oil prices a day after crude fell to a five-week low, when US data on Wednesday showed stockpiles of oil surged a record +14 million barrels last week.
Oil ministers from OPEC meet on Nov. 30 in Vienna to agree on a production cap to reduce a global glut and combat low prices. Market watchers have grown skeptical that a concrete deal can be reached or enforced. OPEC has not made clear how much each member should cut, and several have been resistant. A Reuters survey this week based on shipping data and industry sources indicated that OPEC output probably set a record high in October.
