Investing.com - West Texas Intermediate oil futures declined on Wednesday, amid speculation weekly supply data due later in the session will show U.S. crude inventories rose for the tenth straight week last week.
The U.S. Energy Information Administration will release its weekly report on oil supplies at 10:30AM ET Wednesday. The data was expected to show that crude inventories fell by 471,000 barrels last week.
After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. oil inventories rose by 1.6 million barrels in the week ended November 27, disappointing expectations for a decline of 1.2 million barrels.
U.S. oil supplies in the U.S. have risen for nine consecutive weeks, remaining near levels not seen for this time of year in at least the last 80 years.
Crude oil for delivery in January on the New York Mercantile Exchange sank 40 cents, or 0.94%, to trade at $41.45 a barrel during European morning hours. On Tuesday, Nymex futures inched up 20 cents, or 0.48%.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for January delivery shed 49 cents, or 1.1%, to trade at $43.95 a barrel. A day earlier, prices declined 17 cents, or 0.38%.
The Organization of Petroleum Exporting Countries will meet in Vienna on Friday to review their output strategy. While most market analysts expect the oil cartel to keep their production quota unchanged, pressure is building on Saudi Arabia to waver from its no-cut policy.
Global crude production is outpacing demand following a boom in U.S. shale oil and after a decision by OPEC last year not to cut production in order to defend market share.
Meanwhile, the spread between the Brent and the WTI crude contracts stood at $2.50 a barrel, compared to $2.59 by close of trade on Monday.
Besides the OPEC meeting, oil traders are focusing on Friday’s U.S. nonfarm payrolls report for November, the last jobs report before the Fed decides on interest rates at its December 15-16 meeting.
Market players are also awaiting the outcome of Thursday’s European Central Bank meeting amid speculation the central bank could ramp up its monetary stimulus program.