Oil markets tepid ahead of November 30 OPEC meeting

SINGAPORE: Oil markets were tepid on Monday as traders were reluctant to take on big new positions ahead of an Organization of the Petroleum Exporting Countries (OPEC) meeting at the end of the month, when the producer club is expected to decide whether to continue output cuts aimed at propping up prices.

Brent crude futures LCOc1, the international benchmark for oil prices, were at US$ 62.56 per barrel at 0439 GMT, down 16 cents, or 0.3 per cent, from their last close.

US West Texas Intermediate ( WTI) crude futures were at US$ 56.59 a barrel, up four cents, or 0.1 per cent, from their last settlement.

Traders said they were avoiding taking on large new positions due to uncertainty in markets.

The OPEC, together with a group of non- OPEC producers led by Russia, has been restraining output since the start of this year in a bid to end a global supply overhang and prop up prices.

The deal to curb output is due to expire in March 2018, but OPEC will meet on November 30 to discuss the outlook for the policy.

OPEC is expected to agree an extension of the cut as storage levels remain high despite recent drawdowns, although there are doubts about the willingness of some participants to continue to restrain output.

“( The) OPEC meeting remains the key sector catalyst into yearend ... The market expectation is for an extension through 2018, created by OPEC comments early this fall ... ( but) there is increased risk that OPEC delays the extension decision,” US bank Morgan Stanley said on Monday in a note to clients. — Reuters