Oil Pares Gains Before U.S. Inventory Data, Saudi-Russia Talks - Bloomberg

Oil Pares Gains Before U.S. Inventory Data, Saudi-Russia Talks - Bloomberg:

Oil pared gains as traders awaited weekly U.S. inventory data and any signs of whether Saudi Arabia and Russia will take steps to prevent a global surplus.

Futures were 0.2 percent lower in New York after rising as much as 1.9 percent. Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman will meet at the Group of 20 summit in Argentina and may discuss oil markets before OPEC and its allies review output policy next week in Vienna. U.S. government data will probably show that crude inventories increased by 1 million barrels last week, according to a Bloomberg survey, while an industry report showed they rose by 3.45 million.

“A significant production cut on the part of OPEC and its allied non-OPEC producers at their meeting next week in Vienna will thus be needed to re-balance the oil market next year and ensure that stocks do not rise any further,” said Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt.