Oil prices were broadly stable on Thursday as Brent erased losses. In early European trading before a gathering of OPEC members and their allies against the backdrop of demand concerns over new coronavirus cases in China et al.
Brent crude futures were up 2 cents at $40.73 a barrel at 0725 GMT. U.S. West Texas Intermediate (WTI) crude futures dropped 14 cents to $37.82 a barrel.
Both benchmarks were down about 2% earlier within the session.
“The market continues to balance re-opening optimism. With unknowns around the economic uncertainties from a secondary outbreak of the virus,” said Stephen Innes, strategist at AxiTrader.
Worries about fuel demand rose after a surge in coronavirus cases led Beijing. To cancel flights and shut schools and a number of other U.S. states, including Texas, Florida, and California, reported sharp increases in new cases.
A rise in U.S. crude stockpiles to a record high for a second week. During a row weighed on sentiment, but U.S. government data showed lower inventories of gasoline and distillates. Which incorporates diesel and fuel oil, indicating higher demand.
The Organization of the Petroleum Exporting Countries and its allies. A gaggle referred to as OPEC+, is expected to carry a web meeting afterward Thursday to debate the longer term of a record 9.7 million barrels per day output cut.
OPEC+ compliance with crude production
OPEC+ compliance with crude production cut commitments as well as in May was 87%, two OPEC+ sources said on Wednesday.
Iraq and Kazakhstan are expected to present their plans for production cuts as well as compensation. For overproduction to a gathering of the OPEC+ ministerial committee. Referred to as the JMMC, on Thursday, one OPEC+ source said.
OPEC warned during a monthly report the market would remain in surplus within the last half of 2020 whilst demand improves, because it now expects supply from outside the group to be about 300,000 barrels per day above earlier thought.