WTI, Brent trade near 4-year lows as OPEC uncertainty weighs

Investing.com - Oil futures traded near four-year lows on Wednesday, as market players assessed the likelihood that the Organization of the Petroleum Exporting Countries will cut output to support prices when it meets later this month.

On the ICE Futures Exchange in London, Brent oil for January delivery lost 36 cents, or 0.46%, to trade at $78.11 a barrel.

A day earlier, Brent declined 84 cents, or 1.06%, to settle at $78.47. London-traded Brent futures fell to a four-year low of $76.76 a barrel on November 14.

Elsewhere, on the New York Mercantile Exchange, crude oil for delivery in January dropped 70 cents, or 0.94%, to trade at $73.94 a barrel.

On Tuesday, New-York traded oil futures lost $1.02, or 1.35%, to end at $74.64. Nymex oil hit $73.25 a barrel on November 14, the lowest level since September 2010.

London-traded Brent prices have fallen nearly 33% since June, when it climbed near $116, while WTI futures are down almost 32% from a recent peak of $107.50 in June.

Oil ministers from Venezuela and Ecuador have asked for action to prevent further price declines, while Saudi Arabia and Kuwait have resisted calls to lower production.

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

The 12-member oil cartel is scheduled to meet in Vienna on November 27 to discuss whether to adjust their production target for 2015.

Oil traders awaited the release of weekly supply data out of the U.S. later in the session to gauge the strength of oil demand from the world’s largest consumer.

Wednesday’s government report was expected to show that U.S. crude oil stockpiles fell by 0.8 million barrels last week, while gasoline stockpiles were forecast to increase by 0.6 million barrels.

After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories rose by 3.7 million barrels in the week ended November 14.

The report also showed that gasoline stockpiles rose by 519,000 barrels, while distillate stocks decreased by 3.3 million barrels.