Oil ends down on U.S. inventory surge, doubts on OPEC resolve

Thu Nov 3, 2016 3:58pm EDT
 
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By Ethan Lou

NEW YORK (Reuters) - Oil prices settled down more than 1 percent on Thursday as investors reeled from a record weekly surge in U.S. crude inventories, and remained skeptical about whether OPEC can actually implement its planned output cap.

U.S. crude fell 68 cents, or 1.5 percent, to settle at $44.66 per barrel. At one point, oil had fallen more than $1 a barrel and hit a session low of $44.37.

Brent crude was down 51 cents, or 1.1 percent, at $46.35 a barrel. It hit a session low of 45.99.

Traders said energy monitoring service Genscape reported a weekly build of 1.2 million barrels at the U.S. delivery base in Cushing, Oklahoma.

That kept a lid on oil prices a day after crude fell to a five-week low, when U.S. data on Wednesday showed stockpiles of oil surged a record 14 million barrels last week.

On Thursday, prices were also pressured as U.S. equities fell, with the S&P 500 stock index headed for its longest losing streak since the 2008 financial crisis. [.N]

Oil ministers from the Organization of the Petroleum Exporting Countries (OPEC) meet on Nov. 30 in Vienna to agree on a production cap to reduce a global glut and combat low prices.

Market watchers have grown skeptical that a concrete deal can be reached or enforced.   Continued...

 
A pump jack is seen at sunrise near Bakersfield, California October 14, 2014. REUTERS/Lucy Nicholson