FILE PHOTO: Oil tankers docked wait Tupras plant near the north-western Turkish city of Izmit, Turkey June 28 2017. REUTERS / Umit Bektas / Photo File
Singapore (Reuters) – Oil markets opened cautiously on Tuesday, many traders reluctant to take on new large positions before the G20 gathering in Argentina this weekend and a meeting of OPEC in Austria next week.
US West Texas Intermediate (WTI) f & # 39; yuchersy on oil CLc1 was at $ 51.52 a barrel at 0011 GMT The, down 11 cents, or 0.2 per cent of their final settlement.
International F & # 39; crude oil yuchers LCOc1 even trade, but barely hanging on $ 60 per barrel at the end of the previous day after the immersion by Friday.
After their most recent peak in early October, oil prices have lost nearly a third of its value, encumbered overhang generated power and widespread weakness in the financial markets.
"The recent weakness seems … that was due to a broader sense of impending doom amid weak stocks, geopolitics, the following softening demand and increasing supply," said Jack Allardyce, an oil analyst at the firm Cantor Fitzgerald Europe financial services.
Looking ahead, Allardyce said that "much depends" on the outcome of the Group of 20 (G20) during a meeting in Buenos Aires, where the United States and China are expected to resolve their trade disputes, as well as at a meeting of the Organization of Petroleum Exporting Countries ( OPEC).
The leaders of the G20 countries, which constitute the world's leading economies, are to meet on 30 November and 1 December, with a trade war between Washington and Beijing, the top of the agenda.
One hundred and seventy-fifth annual meeting of OPEC will be held at the headquarters in Vienna, December 6, and the group will discuss its output policy, together with some non-OPEC producers, including Russia.
"It looks as if the market has already decided that the disputed 1.4 million barrels per day cut in output is not enough to offset the decline in demand growth forecasts, so that if this number is, the current (oil price) level can to stay in the new year, or we could see more of some weakness, "said Allardyce.
Reporting Henning Gloystein; Richard Pullin editing