MANTHANTIPS:- Oil slips to $45 as glut overshadows hope for producer action
Oil fell below $45 a barrel on Tuesday after rallying to a two-week high the previous day, as concern about a supply glut outweighed hopes of producer action to prop up prices. In the latest sign of ample supplies, market intelligence firm Genscape reported a rise of more than 307,000 barrels at the Cushing, Oklahoma delivery hub for U.S. crude, traders said. U.S. inventory reports are due on Tuesday and Wednesday. Brent crude for October (LCOc1) was down 35 cents at $45.04 a barrel by 0828 GMT (4:28 a.m. EDT), after rising $1.12 on Monday. The global benchmark fell nearly 15 percent in July. U.S. crude for September (CLc1) was down 24 cents at $42.78. “One can only wonder how long this enthusiasm will last considering the oversupplied fundamental backdrop,” said Tamas Varga of oil broker PVM, referring to Monday’s rally. OPEC comments helped fuel the gain on Monday. Its president Qatar, in a rare statement on the market outlook issued by the group’s Vienna headquarters, said the market was on the path to rebalancing and the drop in prices would be temporary. OPEC sources have been saying since June that renewed talks about a global output freeze could take place in September, when most members, plus non-members such as Russia, are expected to attend an International Energy Forum meeting in Algeria.