US oil prices slip after industry report shows stock build

US benchmark crude was down 10 cents at $45.71 a barrel at 0037 GMT.

By: Reuters | Tokyo | Published:November 16, 2016 7:32 am
oil prices, US oil prices, crude oil, OPEC, oil news, business news, commodities news, latest news, indian express Oil prices had surged on Tuesday as members of OPEC were set to renew efforts to efforts to agree concrete steps to implement a deal on cutting output in the face of persistent global glut. (File Photo)

U.S. crude futures slipped on Wednesday after an industry report showed an unexpected build in U.S. oil stocks, paring some of the gains from the session before when prices rose by the most since early April. Oil prices had surged on Tuesday as members of the Organization of the Petroleum Exporting Countries (OPEC) were set to renew efforts to agree concrete steps to implement a deal on cutting output in the face of persistent global glut. U.S. benchmark crude was down 10 cents at $45.71 a barrel at 0037 GMT. On Tuesday, the contract surged 5.8 percent to $45.81 per barrel in its biggest daily percentage increase since early April.

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Brent futures, the global benchmark, were as yet untraded. They settled up 5.7 percent at $46.95 a barrel in their largest percentage gain since Sept. 28.

OPEC agreed to an outline of a supply cutting deal in September but with two weeks to go before a Nov. 30 meeting, disagreements persist among members and non-OPEC Russia on crucial details.

OPEC secretary-general Mohammed Barkindo will travel to member nations, including Iran and Venezuela, over the next few days to discuss the deal.

A bearish tone was set after the market closed on Tuesday, when the U.S. industry group, the American Petroleum Institute, said crude stocks rose last week.

Crude inventories rose by 3.6 million barrels in the week to Nov. 11 to 488.8 million, compared with analyst expectations for an increase of 1.5 million barrels.