Investing.com - Oil prices edged higher on Tuesday, as hopes the Organization of the Petroleum Exporting Countries will cut output quotas when it meets later this week provided support. Gains were limited amid uncertainty about how quickly the global glut of crude is set to shrink.
On the ICE Futures Exchange in London, Brent oil for January delivery inched up 7 cents, or 0.16%, to trade at $44.68 a barrel during European morning hours. A day earlier, prices declined 25 cents, or 0.56%.
OPEC will meet in Vienna on Friday to review their output strategy. Iran is expected to propose that Saudi Arabia cut back from production levels of more than 10 million barrels a day, but most market analysts say the kingdom is unlikely to waver from its no-cut policy unless non-OPEC producers, such as Russia, were also in sync with the plan.
Global crude production is outpacing demand following a boom in U.S. shale oil and after a decision by OPEC last year not to cut production in order to defend market share.
Elsewhere, crude oil for delivery in January on the New York Mercantile Exchange tacked on 19 cents, or 0.44%, to trade at $41.84 a barrel. On Monday, Nymex futures shed 6 cents, or 0.14%.
Market players looked ahead to 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 Wednesday’s government report could show crude stockpiles fell by 1.2 million barrels in the week ended November 27.
U.S. oil supplies in the U.S. rose for the ninth consecutive week last week, remaining near levels not seen for this time of year in at least the last 80 years.
Meanwhile, the spread between the Brent and the WTI crude contracts stood at $2.84 a barrel, compared to $2.96 by close of trade on Monday.
In the week ahead, investors will be focusing on Friday’s U.S. nonfarm payrolls report for November, the last jobs report before the Fed decides on interest rates at its December 15-16 meeting.
Market players will also pay close attention to a speech by Fed Chair Janet Yellen on Wednesday and congressional testimony on Thursday.
The outcome of Thursday’s European Central Bank meeting will also be in focus amid speculation the central bank could ramp up its monetary stimulus program.