Oil steady before US stockpiles data as OPEC reassures market

Bloomberg

Oil was little changed before the release of US inventory data, while OPEC and its allies reassured traders that they’ll
complete their strategy to clear a global crude surplus.
Futures slipped 0.5 percent in New York after rising 1.1 percent. Government data on is forecast to show that inventories of crude oil fell and gasoline rose, both for the fifth week. The exit strategy is an effort to reassure investors OPEC won’t flood the market once curbs finally expire, according to people familiar with the talks.
Oil is holding gains above $50 a barrel as speculation mounts that supply curbs by members of the Organization of Petroleum Exporting Countries and its allies including Russia will be extended when OPEC meets in Vienna on November 30.
The group and its partners, which together control more than half the world’s crude
output, last week sent the strongest signal yet that their deal will be extended beyond the current expiry in March until the end of 2018.
“US crude stockpiles have swung wildly in recent weeks,” Stephen Brennock, an analyst at PVM Oil Associates Ltd. in London said in a note. OPEC’s de facto leader Saudi Arabia has “promised a smooth exit from the current supply pact in order to prevent a potential return of the supply imbalance.”
West Texas Intermediate for December delivery was at $52.18 a barrel on the New York Mercantile Exchange, down 29 cents, at 10:45 a.m. in London. Total volume traded was about 36 percent below the 100-day average. Prices added 57 cents to $52.47 on Tuesday.
Brent for December settlement slipped 15 cents to $58.18 a barrel on the London-based ICE Futures Europe exchange.