Venezuela – which has often said a deal is close – is desperate for that as its state-led economy has been badly hit by low oil prices caused by more supply than demand. Some 14.5 million barrels were reported drawn for the week ended Sept 2, the biggest weekly drop in 15 years after a tropical storm that slowed the arrival of oil imports in the US Gulf Coast.
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Overall, however, oil markets remain oversupplied as exporters around the world pump near record amounts, while demand stutters. Supply needs to be cut by 1 million barrels a day to rebalance the market and stabilise prices.
Official storage data is due to be published by the US Energy Information Administration (EIA) later on Wednesday, and traders said they were also eagerly anticipating a meeting by the US Federal Reserve’s Federal Open Market Committee (FOMC) which might influence US interest rates.
USA gasoline futures fell 1.6 percent to $1.4390 per gallon.
Global benchmark Brent crude oil futures LCOc1 were trading at $46.46 per barrel, up 58 cents, or 1.26 percent, from their last close.
“OPEC members will not agree on a production freeze.” .
“We just can not see how OPEC and Russian Federation would be able to reach a freeze accord and even less so a production cut accord”, said Bjarne Schieldrop, chief commodities analyst at SEB Markets.
Oil producers are to meet Sept 26-28 on the sidelines of an industry conference in Algeria for talks on potentially freezing oil production, ahead of OPEC’s all-important policy meeting in November. Benchmark Brent crude has averaged about $43 a barrel this year.
Oil prices initially fell on pessimism that the Organization of the Petroleum Exporting Countries and other major crude producers will reach an output freeze deal at September 26-28 informal talks in Algeria.
US crude stockpiles probably increased by 3.13 million barrels last week, according to a Bloomberg survey before government data Wednesday.
Algerian Oil Min said that OPEC producers may decide to hold an extraordinary meeting if a consensus is reached at the informal gathering at Algeria which concludes this on September 26-28.
The Paris-based body had earlier seen the oil oversupply disappearing in the latter part of 2016.
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During a visit to Algiers at the weekend, OPEC Secretary General Mohammed Barkindo said an extraordinary meeting could happen if there is consensus. Inventories at Cushing, the delivery point for WTI, probably rose by 100,000 barrels.
