Futures lost as much as 0.9 percent in New York after falling 1.6 percent the previous two sessions. U.S. crude inventories rose by 1.82 million barrels last week, the American Petroleum Institute was said to report, even as it noted a large decline at the storage hub in Cushing, Oklahoma. While all OPEC members support extending output curbs until the end of 2018, Russia hasn’t yet committed to the proposal, said people familiar with the matter. Oil has eased this week from the highest level in more than two years on uncertainty about the outcome of Thursday’s meeting of the Organization of Petroleum Exporting Countries. While the global glut relative to the five-year average has more than halved since January, the surplus still stands at 140 million barrels, OPEC Secretary-General Mohammad Barkindo said Monday. Click Read More below for additional information.
A day after Donald Trump’s shock U.S. presidential election victory whipsawed prices on some of the heaviest trading volumes on record, U.S. futures hovered above $45 a barrel as other commodities rallied. Crude erased earlier gains after the International Energy Agency said prices may retreat amid “relentless global supply growth” unless the Organization of Petroleum Exporting Countries enacts significant output cuts.
Traders are weighing the implications of the Republican presiding over a country that consumes more oil than any other and is one of the biggest producers too. Trump has promised independence from OPEC and some of his energy policies include opening federal lands for energy production and freeing up offshore areas to development. While investors took comfort from a conciliatory acceptance speech on Wednesday, a surge in U.S. crude stockpiles served as a reminder of the massive oversupply looming over the market.
“Prices could fall to $40 or perhaps a little bit lower, especially in the absence of a deal” by OPEC, Abhishek Deshpande, an analyst at Natixis SA, said in a Bloomberg Television interview. While President-Elect Trump may take measures to support the American oil industry, “U.S. production rising is only going to put further pressure on oil prices,” Deshpande said.
West Texas Intermediate for December delivery lost 4 cents to $45.23 a barrel on the New York Mercantile Exchange at 10:37 a.m. London time after earlier rising 0.8 percent. Prices closed up 0.6 percent on Wednesday, erasing a 4.3 percent slide as Trump’s pledge to unite divided political factions prompted a reversal in the knee-jerk sell-off. Aggregate trading volume on Nymex showed 1.768 million contracts changing hands, according to updated bourse data on Thursday.
more at: http://www.bloomberg.com/news/articles/2016-11-09/oil-steady-as-trump-seen-supporting-business-friendly-policies