The American Petroleum Institute reported a 7.5 million barrel draw in USA crude oil supplies on Tuesday, instead of the build that many expected.
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The report also showed that gasoline inventories tumbled by 3.204 million barrels, compared to expectations for a decline of 0.567 million barrels, while distillate stockpiles rose by 2.238 million barrels, compared to forecasts for an increase of 0.250 million.
The November contract for global crude benchmark Brent was down 0.3% at $45.80 a barrel while its USA counterpart West Texas Intermediate was down 0.55% at $43.62 for October deliveries.
Two factors being closely watched this week are the Federal Reserve’s decision on US interest rates and stockpile numbers to be released by the US Energy Information Administration (EIA), dealers said.
The process of re-balancing the oil market must be “fast-tracked”, Barkindo said at a conference in Rome.
Algeria’s Energy Minister Noureddine Bouterfa said on September 20 he was “optimistic” participants would reach consensus on how to prop up the oil market.
International Brent crude futures were at $46.47 per barrel, up 59 cents, or 1.3 per cent, from their last close.
World oil prices rose slightly on Monday on supply concerns in Libya and Nigeria, and after OPEC member Venezuela indicated a deal to limit output was close.
Major oil producers from the Organization of the Petroleum Exporting Countries (OPEC) and also Russian Federation plan to meet in Algeria next week to discuss measures to rein in the oversupply, but analysts said they did not expect significant cuts to production.
Both benchmarks hit six-week lows earlier on the day in volatile trade ahead of the September 26-28 informal talks in Algeria between the Organization of the Petroleum Exporting Countries and other producers on a proposed deal to contain a glut that has weighed on prices for about two years. Total U.S. crude oil inventories stood at 504,6 million barrels as of last week, which the EIA considered to be “historically high levels for this time of year”. Earlier this month, Mohsen Ghamsari, director for worldwide affairs at state-run National Iranian Oil Co., said the Algiers meeting will be too soon for Iran to discuss freezing production.
“If we reach an agreement immediately we would call an extraordinary OPEC meeting, which could take place there because we would all be present”, added Del Pino.
US gasoline futures tumbled 4 per cent after Colonial Pipeline Co said it expects to restart its main 1.3 million barrel per day gasoline line on Wednesday after being shut for more than a week to fix the biggest leak in almost two decades.
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Algeria’s Energy Minister Noureddine Bouterfa last week said there was a consensus among OPEC and non-OPEC members about the need to stabilize the oil market, and has been pushing for a price around $50 to $60 a barrel. OPEC must reach an equitable agreement that all its members support, and any accord must also satisfy non-OPEC producers, he said.
