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Crude oil futures decline as OPEC supply outlook weighs

Published 11/12/2014, 09:00 AM
Updated 11/12/2014, 09:00 AM
Brent oil edges lower as OPEC supply outlook weighs

Brent oil edges lower as OPEC supply outlook weighs

Investing.com - Brent oil futures declined on Wednesday, holding near the previous session's four-year low amid ongoing concerns over a glut in world markets.

On the ICE Futures Exchange in London, Brent for January delivery fell by as much as 1% to touch a daily low of $81.56 a barrel, before recovering to trade at $82.04 during U.S. morning hours, down 35 cents, or 0.42%.

A day earlier, London-traded Brent futures fell to $81.27 a barrel, a level not seen since October 2010.

The Organization of the Petroleum Exporting Countries' monthly report released earlier showed that its collective crude output fell by 226,400 barrels a day in October to a total of 30.25 million barrels.

According to the agency, the decline was led by Saudi Arabia, which cut production by approximately 69,000 barrels per day to 9.6 million.

Despite the fall in OPEC output, market players remained concerned over a global supply glut.

Brent prices have fallen nearly 30% since June, when it climbed near $116 a barrel.

Concerns over weakening global demand combined with indications that OPEC producers will not cut output have weighed on prices in recent months.

Oil ministers from the 12-member group are scheduled to meet in Vienna on November 27 to discuss whether to adjust their production target for 2015.

Elsewhere, on the New York Mercantile Exchange, crude oil for delivery in December shed 51 cents, or 0.65%, to trade at $77.43 a barrel.

Nymex oil hit $75.84 a barrel on November 4, the lowest level since October 2011. U.S. oil futures are down almost 28% from a recent peak of $107.50 in June.

Oil traders awaited the release of fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of demand in the world’s largest oil consumer.

The American Petroleum Institute will release its inventories report later in the day, while Thursday’s government report could show crude stockpiles rose by 0.3 million barrels in the week ended November 7.

The data comes out one day later than usual due to the Veterans Day holiday in the U.S. on Tuesday.

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