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Oil prices static on uncertainty over OPEC-led production cut

Published 23/11/2016, 12:02 pm
Oil prices static on uncertainty over OPEC-led production cut
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* Most analysts expect OPEC-led cut to be agreed

* Doubts on cut being deep enough to end glut

* Trading thin ahead of U.S. Thanksgiving holiday

By Henning Gloystein

SINGAPORE, Nov 23 (Reuters) - Oil prices moved little early on Wednesday with traders reluctant to dive in as uncertainty loomed over a planned OPEC-led oil production cut, and volumes low ahead of the U.S. Thanksgiving holiday on Thursday.

U.S. West Texas Intermediate (WTI) crude oil futures CLc1 were trading at $46.09 at 0100 GMT, up 6 cents from their last settlement.

International Brent crude oil futures LCOc1 were at $49.22 a barrel, up 10 cents.

"The market seems unwilling to push oil towards $50 a barrel ahead of the Thanksgiving holiday tomorrow," said Jeffrey Halley, senior market analyst at OANDA brokerage in Singapore. "Their reticence is understandable given that longs (long positions) put on above that level have not ended well in recent times."

"Tonight's (U.S.) EIA Crude Inventory numbers should provide a welcome, albeit temporary sideshow to the OPEC main event. Otherwise, we expect Asia to continue the sideways trading ranges," Halley said.

The Energy Information Administration (EIA) is due to publish official U.S. crude oil and refined product inventory data later on Wednesday.

Wednesday's lethargy came after oil prices rallied earlier this week. Traders anticipated the Organization of the Petroleum Exporting Countries (OPEC) would successfully implement a planned, coordinated production cut - to be discussed at a Nov. 30 meeting - in order to prop up prices. by late Tuesday analysts had become wary of the prospects for such a deal, as it remained unclear whether major OPEC-producers Iraq and Iran were willing to participate in a meaningful way. in the OPEC production cut agreement could see oil prices weaker in trading today," ANZ bank said in a note on Wednesday.

"A preliminary meeting ahead of next week's OPEC gathering failed to resolve the issues around Iran and Iraq's involvement in the production cut agreement," it said. "Despite this hiccup, we still expect the group to reach an agreement next week."

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