Investing.com - Oil prices swung between gains and losses on Tuesday, as market players weighed the likelihood that the Organization of the Petroleum Exporting Countries will cut output to support prices when it meets in Vienna later this week.
On the ICE Futures Exchange in London, Brent oil for January delivery shed 9 cents, or 0.19%, to trade at $44.52 a barrel during U.S. n morning hours. A day earlier, prices declined 25 cents, or 0.56%.
OPEC 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.
Elsewhere, crude oil for delivery in January on the New York Mercantile Exchange inched up 13 cents, or 0.31%, to trade at $41.78 a barrel. On Monday, Nymex futures shed 6 cents, or 0.14%.
Market players looked ahead to fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of demand in the world’s largest oil consumer.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles fell by 1.2 million barrels in the week ended November 27.
U.S. oil supplies in the U.S. rose for the ninth consecutive week last week, remaining near levels not seen for this time of year in at least the last 80 years.
Meanwhile, the spread between the Brent and the WTI crude contracts stood at $2.74 a barrel, compared to $2.96 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.