On Thursday, oil prices are falling, but got support near the June’s peak after data showed that US crude stocks fell the fifth week in a row, while market players expect the details of the planned production cuts by the Organization of Petroleum Exporting Countries.
As of 08:05 GMT, WTI crude for November delivery traded on the New York Mercantile Exchange fell 40 cents, or 0.8%, to $ 49.43 a barrel, after the jump Wednesday by $ 1.14, or 2.34%.
A day earlier, the oil traded in New York rose to a session’s peak at $ 49.97, the highest since June 29, after the weekly data of the US Energy Information Administration showed that crude oil inventories fell 3.0 million barrels last week to 499.7 million, the lowest level since January.
On the ICE exchange in London, Brent crude for December delivery fell 41 cents, or 0.79%, to $ 51.45 a barrel. On Wednesday, the contract rose to $ 52.09, the highest since June 10.
According to the Algerian television Ennahar TV, Algeria's Oil Minister Noureddine Buterfa said that OPEC and non-OPEC countries are planning to hold an informal meeting in Istanbul on October 8-13 to discuss ways to implement the agreement to limit the production levels achieved in Algeria at the end of last months.
The cartel has reached an agreement on the limitation of production to 32.5-33.0 million barrels per day, lowering it from the current level of 33.24 million by 0.7-2.2%.
Nevertheless, the market is still skeptical about the deal, evaluating ways of implementing the OPEC plan.
Next week in Istanbul, the leading OPEC countries will hold an informal meeting with Russia as well, and will discuss possible co-production limits, said Noureddine Buterfa in an interview with a local television, Reuters reports.
The Venezuelan government on Thursday issued a statement saying that the negotiations will be also attended by the representatives of Saudi Arabia, Algeria, Gabon, Qatar, and the United Arab Emirates.
The Istanbul Energy Congress will take place during October 9-13.