MANTHANTIPS:- Oil falls on oversupply; calls for producer meeting met with scepticism
Oil prices fell on Wednesday as a global supply overhang weighed on markets, while talk of a potential producer meeting to discuss propping up prices was largely expected by analysts to have no impact on supplies. U.S. West Texas Intermediate (WTI) crude oil futures (CLc1) were trading at $42.43 per barrel at 0657 GMT, down 34 cents from their last settlement, or 0.79 percent. International Brent crude futures (LCOc1) were at $44.62 per barrel, down 36 cents, or 0.8 percent. Traders said that markets were being weighed down by an ongoing supply overhang in crude and refined fuel products, while a suggested meeting by oil producers was unlikely to result in a significant market tightening. “Oil eased lower as another round of proposed production freeze talks by OPEC failed to excite investors. An upgrade in U.S. oil production forecasts by EIA also weighed on sentiment. EIA is now expecting U.S. output to reach 8.31 million barrels per day in 2017, up from its forecast of 8.2 million barrels per day in July,” ANZ Bank said on Wednesday.