Commodity: Crude oil drop on renewed doubts on OPEC-led production cut

Crude Oil prices fell in Asian trade on Wednesday, altering earlier gains, as doubts re-emerged over whether OPEC would agree to a crude oil production cut at a ministerial meet next week.  

A strong dollar, which traded close by the 13 1/2-year peak hit last week, also weighed on prices among thin trading ahead of the US Thanksgiving holiday on Thursday. 

International Brent crude oil futures dropped 8 cents to $49.04 a barrel at 0548 GMT after climbing to $49.42 a barrel earlier in Wednesday's session on optimism OPEC would agree to an output cut. 

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Commodity Watch: Crude oil dips as OPEC output soars

The Futures of Crude oil closed low in the domestic market on Monday as an increase in the number of rigs actively drilling for oil in the U.S. and soaring crude output from prime producers pushed prices in to low levels.

Ahead this week, the market will eye for the weekly U.S. crude inventories & production data to be released on Wednesday. China will also release its monthly crude production & throughput data on the same day.

At the MCX, crude oil futures for October 2016 contract closed at Rs 3327 per barrel, downward by 0.36 per cent, after opening at Rs 3356, against a last close of Rs 3339. It touched the intra-day lower of Rs 3306.

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Today Crude Oil down on US supply rise

During late morning trade Crude oil futures fell in the domestic market on Thursday as investors & speculators exit positions in the energy commodity after US crude storage levels rose significantly last week, inflaming fears of a global supply glut.

The industry-funded American Petroleum Institute (API) said on Wednesday that US crude oil supplies climbed by 2.7 million barrels in the week ended October 7, 2016. Analysts were expecting crude oil inventories in the US to rise by 250,000 barrels last week. The EIA will release separate US crude inventory data on Thursday.

Doubts are emerging over the OPEC’s plan to slash output by 200,000 to 700,000 barrels a day reached late September as Russia remains non-committal over a production cut.

At the MCX, crude oil futures for October 2016 contract is trading at Rs 3331 per barrel, downward by 0.60 %, after opening at Rs 3331, against a last close of Rs 3386. It touched the intra-day low of Rs 3322. 

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Fed meet: Today Oil prices up ahead of US stockpiles data

Oil prices up in Asia today as traders wait for the release of US energy stockpiles data and a US central bank decision on interest rates. 

During two years the first crude shipment from Libya had no immediate impact on prices a week before OPEC producers & Russia meeting in Algeria to discuss modes to stabilise prices.

At around 0240 GMT, the US benchmark West Texas Intermediary for November delivery, a new contract, was 77 cents high at USD 44.82 & Brent for November was up 59 cents at USD 46.47.

On Tuesday an oil tanker left the Libyan port of Ras Lanouf for Italy, in the first shipment for late 2014 when fighting erupted over control of the "oil crescent", an official said in Tripoli.

Most analysts, though, expect officials to keep borrowing costs at ongoing levels.

We expect the (policy board) to keep rates stable this meet, Singapore's United Overseas Bank said in a note.

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