Investing.com - Crude oil prices were last quoted sharply weaker heading into the Asian trading session on Wednesday as mixed industry inventory data from the U.S. and questions on OPEC's production plans weighed.
U.S. crude oil on the New York Mercantile Exchange were last quoted at $45.25 a barrel, down 3.89%.
Prices were weighed Tuesday by conflicting media comments that call into question OPEC's ability to come to agreement about a cut in production. OPEC members will meet Wednesday in Vienna, Austria.
The American Petroleum Institute late Tuesday said crude oil inventories fell 720,000 barrels last week, 120,000 barrels more than expected and which followed a draw of 1.28 million barrels the previous week.
Overnight, oil prices fell more than 3% on Tuesday, extending early losses amid growing doubts that the Organization of the Petroleum Exporting Countries will be able to reach an agreement on a deal to curb output.
Global benchmark Brent futures fell sharply and last quoted down nearly 4% to levels around $47.35 a barrel.
OPEC is attempting to get its 14 member states, along with non-OPEC member Russia, to implement coordinated production cuts aimed at reducing a global supply glut that has seen prices more than halve since 2014.
Oil came under renewed selling pressure after Indonesia’s energy minister said Tuesday he’s “not optimistic” that OPEC will agree on a deal to rein in oversupply.
In September the producer cartel reached an agreement that would reduce production to between 32.5 million and 33 million barrels per day.
The organization is to hold a key meeting in Vienna on Wednesday, where the deal was expected to be rubber stamped.
But reaching a deal has proved problematic, amid disagreements over which producers should cut and by how much.
Technical talks between OPEC members on Monday failed to reach an agreement on output cuts, with Iraq and Iran - OPEC’s second and third-largest producers – resisting pressure from Saudi Arabia to reduce production.
Most analysts still believe OPEC will sign an accord to cut output, but doubts remain over whether it will be enough to support the market.
Morgan Stanley (NYSE:MS) said Tuesday it still sees a deal as likely but added that the risks of failure have risen.
“A strong announcement from OPEC to cut meaningfully could lift oil to $50 or more over the following days, particularly if supported by strong words from non-OPEC, before focus shifts to execution risk, sustainability and any non-OPEC supply response” analysts at Morgan Stanley wrote.