Oil looks to stabilize ahead of EIA data, OPEC meeting in focus

Oil prices on both sides of the Atlantic stalled yesterday’s downslide and now trades modestly higher on Wednesday, correcting previous losses ahead of the EIA crude inventory report and OPEC Algerian meeting.

Oil eyes US EIA report

Currently, both crude benchmarks trade range bound to higher, with Brent up +0.39% at $ 46.70, while WTI gains +0.20% to $ 44.76. Oil prices consolidate almost 3% drop witnessed yesterday, after Iran rejected Saudi Arabia’s offer to limits its output, which squashed hopes that an agreement would be reached this week to stabilize oil markets.

The black gold attempts a tepid-bounce this session as markets continue to cheer an unexpected draw in the US crude reserves, as reflected by the API report published late-Tuesday.

However, gains remain capped in response to a broadly higher US dollar and amid increased nervousness ahead of the OPEC meeting in Algeria and official US government report on crude stockpiles.

The OPEC members are expected to hold informal talks at 1400 GMT, as the three-day International Energy Forum being held in Algiers ends today.