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Oil pares near 3-percent gains amid oil glut worries

Published 09/08/2016, 01:53
Updated 09/08/2016, 02:00
© Reuters. Crude oil storage tanks are seen from above at the Cushing oil hub in Cushing
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TOKYO (Reuters) - Crude prices inched down on Tuesday in Asia, paring gains of nearly 3 percent from a day earlier, as worries over a global oil glut tempered speculation that OPEC would try to restrain output.

Qatar's Energy Minister and OPEC President Mohammad bin Saleh al-Sada said on Monday the oil market is on the path to rebalancing despite the recent decline in global oil prices, adding that OPEC was in continuous talks to stabilise the market.

OPEC members are to have an informal meeting on the sidelines of the International Energy Forum, which groups producers and consumers, in Algeria from Sept. 26-28. Some OPEC officials had said a revival of talks on a global oil production freeze could be discussed at the meeting if oil prices weaken.

The upward momentum was offset by news that the Louisiana Offshore Oil Port in the United States will have an additional 2.5 million barrels in oil capacity by April 2017.

London Brent crude for October delivery (LCOc1) was down 19 cents at $45.20 a barrel by 0033 GMT, after settling up $1.12, or 2.5 percent, on Monday.

NYMEX crude for September delivery (CLc1) was down 19 cents at $42.83 a barrel, after closing up $1.22, or 2.9 percent, on Monday.

© Reuters. Crude oil storage tanks are seen from above at the Cushing oil hub in Cushing

Market intelligence firm Genscape reported a build of more than 307,000 barrels at the Cushing, Oklahoma delivery hub for WTI futures in the week to Aug. 5, traders said, even as analysts forecast a total U.S. crude inventory drop of 1 million barrels. [EIA/S]

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