Futures fell as much as 1 percent after advancing 2.3 percent Wednesday to the highest close in more than three months. The market is set to remain oversupplied in 2017 and prices will stall at $55 a barrel as shale drillers get back to work, Goldman Sachs Group Inc.’s Head of Commodities Research Jeff Currie said. U.S. crude stockpiles shrank below 500 million barrels last week for the first time since January, according to government data. West Texas Intermediate for November delivery lost as much as 50 cents to $49.33 a barrel on the New York Mercantile Exchange and was at $49.78 as of 10:03 a.m. London time. The contract increased $1.14 to $49.83 on Wednesday, the highest close since June 29. Total volume traded Thursday was about 23 percent below the 100-day average. Prices rose 7.9 percent last month.
Oil retreated below $47 in New York after OPEC officials failed Monday to work out a compromise on a deal to cut production and boost crude prices.
Futures lost as much as 2.3 percent. A 10-hour technical meeting focusing on how to divide cuts failed to resolve differences, with Iran still aiming to produce roughly 7 percent more than a level proposed by Saudi Arabia. Prices on Monday rallied 2.2 percent after Iraq’s oil minister said he was optimistic a deal would be reached. He reiterated the confidence on Tuesday. Goldman Sachs Group Inc. said the market is pricing in a 30 percent chance of a deal.
West Texas Intermediate for January delivery lost as much as $1.06 to $46.02 a barrel on New York Mercantile Exchange and was at $46.09 at 12:15 p.m. in London. Prices Monday rose $1.02 to $47.08 a barrel.
Brent for January settlement, which expires Wednesday, lost as much as $1.07, or 2.2 percent, to $47.17 a barrel on the London-based ICE Futures Europe exchange. The contract advanced 2.1 percent to $48.24 a barrel Monday. The global benchmark traded at a $1.23 premium to WTI for the same month. The more-active February futures were down 64 cents at $48.57 a barrel.
more at: https://www.bloomberg.com/news/articles/2016-11-29/oil-retreats-below-47-as-opec-said-to-stay-split-on-output-deal