Oil prices decline ahead of US crude stockpiles data

Oil prices edged lower on Wednesday ahead of official data on US oil inventories and as investors awaited the outcome of the OPEC+ meeting, scheduled for Thursday, Dec. 3, which is expected to decide on next year’s production levels.

The risks of the OPEC+ failing to reach an agreement are high, Reuters reported, citing ANZ analysts.

A resurgent virus has seen restrictions on travel increase across Europe and the US, they said, adding the market surplus could be as high as 1.5 million to 3 million barrels per day in the first half of next year, if the group does not extend cuts.

In terms of trading, International benchmark Brent crude was down 0.7% at $47.10 per barrel, at 9 am Makkah time.

WTI crude fell 0.8% to $44.19 a barrel.

Meanwhile, data from the American Petroleum Institute showed US crude inventories rose by 4.1 million barrels last week, Reuters reported.

The Energy Information Administration is due to release US stockpile data later today.