Oil prices dip on US crude data, OPEC speculation
Oil prices dipped Wednesday following mixed US crude-inventory data and reports suggesting an OPEC production cut is unlikely when the organization meets in November.
US benchmark West Texas Intermediate for October delivery shed 46 cents to close at $94.42 a barrel on the New York Mercantile Exchange.
European benchmark Brent oil for November delivery slipped eight cents to $98.97 a barrel in London.
US crude inventories unexpectedly increased by 3.7 million barrels for the week ending September 12, according to the Department of Energy. Analysts had expected inventories to fall by 1.2 million barrels, a survey by Dow Jones Newswires showed.
However, John Kilduff, founding partner at Again Capital, said the surprising increase in crude stocks was countered somewhat by other aspects of the US oil-supply report.
The report showed a drop of 1.6 million in gasoline stocks, whereas analysts had expected the level to be unchanged. Analysts also cited a decline in oil inventories in Cushing, Oklahoma, a key trading hub.
Kilduff said oil prices took a hit from "mixed messages" out of OPEC regarding its plans for its November meeting.
Abdullah El-Badri, secretary-general of the Organization of the Petroleum Exporting Countries (OPEC), said Tuesday the cartel would cut output in November, a statement that helped lift prices from a two-year low.
But a Dow Jones Newswires report Wednesday, citing unnamed OPEC delegates, said the organization was unlikely to cut in November.
The oil market was monitoring the latest monetary policy decision by the US Federal Reserve, which, as expected, held to its expectation for an initial rise in short-term interest rates in 2015.
The dollar rose modestly after the Fed announcement. A stronger dollar adds downward pressure to oil, which is traded in dollars and becomes more costly for buyers using weaker currencies.
