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Oil declines but holds near June highs amid improved sentiment

Published 10/06/2016, 04:07 AM
© Reuters.  Oil prices fall but remain supported near 4-month highs
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Investing.com - Oil prices were lower during European hours on Thursday, but remained supported near the highest level since June after data showed that crude supplies in the U.S. fell for the fifth week in a row and as market players awaited details of a planned output cut by the Organization of the Petroleum Exporting Countries.

Crude oil for November delivery on the New York Mercantile Exchange shed 40 cents, or 0.8%, to $49.43 a barrel by 4:05AM ET (08:05GMT), after rallying $1.14, or 2.34%, on Wednesday.

New York-traded oil rose to a daily peak of $49.97 the prior day, a level not seen since June 29, after weekly data from the U.S. Energy Information Administration showed that crude oil inventories fell by 3.0 million barrels last week to 499.7 million, the lowest since January.

Elsewhere, Brent oil for December delivery on the ICE Futures Exchange in London dipped 41 cents, or 0.79%, to $51.45 a barrel. The contract rose to $52.09 on Wednesday, the most since June 10.

OPEC and non-OPEC oil producers plan an informal meeting in Istanbul Oct. 8-13 to discuss how to implement a production deal OPEC members reached in Algiers late last month, Algerian Energy Minister Nouredine Bouterfa has told local Ennahar TV.

The oil cartel reached an agreement to limit production to a range of 32.5 million to 33.0 million barrels per day, a reduction of 0.7%-to-2.2% from its current output of 33.2 million barrels.

However, market analysts remained skeptical of the deal, pondering how such a plan would be implemented.

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