Crude Oil Dips In Asia As US Heads For Holiday, All Eyes On OPEC Next Week

Investing.com – Crude oil dipped in Asia on Thursday as the US heads to a long weekend and traders await word from OPEC on a widely expected extension of crude oil output curbs.

On the New York Mercantile Exchange crude futures for December delivery eased 0.17% to $57.92 a barrel, while on London’s Intercontinental Exchange, also dipped 0.17% to $63.16 a barrel.

Overnight, crude oil prices settled higher on Wednesday after data showed crude stockpiles fell for the first time in three weeks, while a disruption to a major pipeline in Canada lifted sentiment.

Crude oil prices settled at two-and-a-half year highs as investors cheered a report showing crude supplies fell more-than-estimated, while gasoline stockpiles rose marginally last week, easing recent concerns that a ramp-up in US production would add to the glut in supplies.

Inventories of fell by roughly 1.9 million barrels for the week ended Nov. 18, beating expectations of a draw of 1.6 million barrels. Crude oil stockpiles fell for the first time in three weeks.

Gasoline inventories – one of the products that crude is refined into – rose by 44,000 barrels, less-than-estimates for rise of 737,000 barrels, while supplies of distillate – the class of fuels that includes diesel and – unexpectedly rose by about 269,000 barrels, confounding expectations for a draw of 1.2 million barrels.

The rally in oil prices comes as the Opec meeting slated for Nov. 30 draws closer amid expectations that Opec will agree to extend its production cuts beyond March, when the current phase of output curbs is set to expire.

Also adding to positive sentiment on oil prices was an announcement by TransCanada revealing that it would slash oil deliveries to the United States by 85% or more on its keystone crude pipeline.

The line, which links Alberta’s oil sands to U.S. refineries, was shut last week following a 5,000-barrel spill in South Dakota.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.