High fuel stockpiles and developing industry efficiency weighed on oil markets. Despite these factors, oil prices were still on track for a strong weekly gain.
Brent crude futures fell 8 cents or by 0.2 percent and traded at $48.34 per barrel. The international benchmark for oil prices is up 3.5 so far this week.
U.S. WTI crude futures traded at $45.98 per barrel, edging down by 10 cents or 0.2 percent but is headed for a weekly gain of 4 percent for the week.
Crude prices are now at the levels seen late November 2016, when OPEC along with other producers pledged to lower production during the first half of 2017 in a move to shore up the market.
However, oil analysts at Sanford C. Bernstein said that global oil inventories remain at a record high, stating that OECD inventories are more likely to finish higher than lower for the first half of 2017. The research and brokerage firm advised that the oil cartel will need to implement deeper cuts and extend its deal in order to remove the inventory overhang and bolster prices.
The material has been provided by InstaForex Company – www.instaforex.com