Oil prices were uncertain how to proceed Tuesday late European trading, investors are showing cautious after a sharp rebound in prices yesterday, fueled by hopes for major crude oil producers to agree to cap their offer .
Around 4:35 p.m. GMT (24:35 in Montreal), a barrel of Brent North Sea crude for October delivery was worth 45.05 dollars on the InterContinental Exchange (ICE) in London, down 34 cents from the close Monday .
On the New York Mercantile Exchange (Nymex), a barrel of “light sweet crude” (WTI) for September delivery lost meanwhile 23 cents to 42.79 dollars.
After significant progress on Monday in the wake of the announcement of an informal meeting of member countries of the Organization of Petroleum Exporting Countries (OPEC) in late September in Algeria, the price of Brent and WTI seemed more febrile Tuesday, oscillating around the equilibrium without managing to hang a cap.
“The confirmation of discussions on OPEC policy next month allowed the course to extend their recent gains,” after they hit last week of the lowest in three and a half months, noted Jasper Lawler, analyst at CMC Markets.
Oil prices, which had fallen in July amid concerns about the continued high level of supply, will resume in effect since last week and were encouraged to continue on Monday movement, though less vigorously, by announcement of an OPEC meeting in September to discuss the stabilization of the market.
The chairman of the cartel, Mohammed Bin Saleh Al-Sada, has announced in a statement that the 14 member countries of the organization will hold an informal meeting in late September on the sidelines of an energy forum in Algiers.
“Ultimately, discussions should prove to be empty words, with OPEC sticking to its defense policy of its market share,” warned in a note experts from Commerzbank, while hopes for an agreement between major producers to regulate global surpluses have been repeatedly disappointed since the beginning of the year.
As investor attention she was now primarily focused recent weekly data on US oil inventories, the trade association American Petroleum Institute (API) will give its estimates after the close of trade.
They will be followed on Wednesday official figures from the US Department of Energy (DoE) that “should show a decline of 1.5 million barrels (in crude inventories in the US) and confirm the general trend of declining non-OPEC supply, “thought Mr. Lawler.
The previous statistics published last Wednesday DoE had been the catalyst during the rebound, allowing the WTI back above 40 dollars a barrel after the announcement of a further decline in production and an unexpected decline gasoline reserves.