Crude prices steady in Asian trade, Russia mulls oil talks
Crude oil held steady in Asia on Tuesday, following big gains in the previous session after Russia signaled it was prepared to discuss the global oil market with other big producers.
Brent crude LCOc1, the global crude benchmark, edged up 10 cents to $49.35 a barrel at 2255 EDT. It rose 2.3 percent on Monday to settle at $49.25 a barrel.
The U.S. benchmark, West Texas Intermediate crude CLc1, was flat at $46.27. The contract gained 1.6 percent in the previous session.
Investors are awaiting U.S. government data on crude inventories this week. Some analysts are predicting the data will show further builds in crude stocks, putting oil prices under renewed pressure.
A Reuters poll on Monday indicated U.S. crude stockpiles rose last week for a second straight week, gaining 1.8 million barrels on average in the week to Oct. 2.
The U.S. Energy Information Administration, which reports official storage data on Wednesday, said last week that inventories were up about 4 million barrels in the week to Sept. 25.
“We see Brent staying under pressure until first quarter of next year, close to $44 in 2016 Q1 and then rising steadily to $54 in 2016 Q4,” Abhishek Deshpande, oil analyst at French bank Natixis, told the Reuters Global Oil Forum.
“We expect WTI to trade at a discount of $4 – $5 to Brent in 2015,” he said.
Russia, one of the world’s top three oil producers, said on the weekend it was prepared to meet OPEC and non-OPEC oil producers to discuss the market if such a gathering is called.
A separate meeting between Russian and Saudi officials was being planned for the end of October, Russian Energy Minister Alexander Novak has said.
Brent crude fell 24 percent last quarter and is down 14 percent this year, following a 48 percent decline in 2014.
U.S. crude is down 13 percent this year, after falling 46 percent last year. The contract also fell 24 percent in the last quarter.
Source: Reuters – Crude prices steady in Asian trade, Russia mulls oil talks
