U.S. Crude Supplies On A Rise, Will Doha Leave OPEC Empty-Handed Again?

Oil futures turned lower on Wednesday after experiencing a significant rally the day before. Official data showing increasing crude supplies in the U.S. continued to weigh on oil prices, despite the fact that some OPEC and non-OPEC members have raised their voice to support an agreement to curb production which is expected to be finalized at the end of this month.

Reuters reported that Russia’s Energy Minister Alexander Novak on Wednesday stated that his country is ready to join OPEC’s deal an agreement to curb production. Novak also added that he saw big chances that the oil producers’ group can agree on the terms of the freeze by November 30th. The Russian Energy Minister is expected to have a bilateral meeting with his Saudi counterpart, Khalid al-Falih, at a gas conference in Doha this week.

According to an Algerian energy source, a number of energy ministers from OPEC countries are likely to meet informally in Doha to try to build consensus over specific quotas for each member after having reached a preliminary decision on snapping oil production in September in Algiers.

In the U.S., the Energy Information Administration reported that domestic crude supplies rose by 5.3 million barrels in the week ended November 11th. The result exceeded analysts’ expectations which called for 1.5 million-barrel build last week.

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