OIL UPDATE 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 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, the international benchmark for oil prices, were at $62.47 per barrel at 0752 GMT, down 25 cents, or 0.4 per cent, from their last close.

US West Texas Intermediate (WTI) crude futures were at $56.57 a barrel, up just 2 cents from their last settlement.

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

“Traders seem to be turning their attention now to the Opec/Non-Opec meeting ... and an extension of the production cut deal to cover all of 2018,” said Jeffrey Halley of futures brokerage OANDA.

The Organization of the Petroleum Exporting Countries (Opec), together with a group of nonOpec 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. — Reuters