Oil prices fell further below $ 59 a barrel on Wednesday, under pressure from continuing concerns about the global demand outlook as energy traders expected inventory data for fresh supply-side insights.
Crude Brent, the world standard, traded at $ 58.76 a barrel as of 07:51 AM ET. The US crude futures gained 20 cents to trade at $ 53.01.
Concerns over the global outlook for oil demand raised after the International Monetary Fund said Tuesday that the US-China trade war would cut 2019 global growth to its slowdown since the 2008-2009 financial crisis.
“Prices are under pressure from rising pessimism about the global economy and subsequent demand-side concerns,” said PVM oil broker Stephen Brennock.
Power traders were waiting for inventory data later in the day. The American Petroleum Institute will release its weekly stocks report at 4:30 a.m. ET, a day later than usual due to the Columbus Day celebration.
The EIA will publish its weekly report on domestic oil inventories on Thursday, with analysts expecting construction of 2.77 million barrels after an increase of 2.91 million barrels last week.
Mimes found some support from indications that the Organization of Petroleum Exporting Countries could announce further cuts to oil production in December. OPEC and its allies meet on December 5-6 in Vienna to review production policy.
On Tuesday, OPEC Secretary-General Mohammad Barkindo said there is an opportunity for OPEC and its allies to implement deeper cuts in oil production.
Barkindo said OPEC will do what it can with allied producers to maintain the stability of the oil market beyond 2020, in a signal that producers will continue to cooperate. Russia and other producers have a deal to cut oil production by 1.2 million barrels a day by March 2020, but Russian officials have so far said it was too early to discuss additional cuts in production./Investing.com