Oil trades subdued ahead of EIA inventory report

Oil prices on both sides of the Atlantic halted its recovery and fell back into losses, as markets remain wary over an OPEC cut deal, while also weigh the latest bearish private sector crude stockpiles.

Oil extends the retreat from monthly tops

Currently, both crude benchmarks trade range-bound to lower, with Brent down -0.26% to trade around $ 49 mark while WTI loses -0.23% to 47.92 levels. Oil prices are seen consolidating yesterday’s losses, as uncertainty increases over a potential OPEC output agreement likely to be reached on Nov 30.

While API crude inventory report showed that the US crude reserves fell by 1.3 million barrels for the week ended Nov. 18, however, a bigger-than expected build in the gasoline stockpiles, is what actually continues to weigh down on the black gold.

Focus now shifts towards the official government figures on the crude inventory change from EIA due later on Wednesday for fresh direction. While OPEC output deal-related news flow will be closely monitored for further incentives.

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