By Neanda Salvaterra and Dan Strumpf
Oil prices edged down on Wednesday, as investors cashed in on earlier gains and waited for a meeting of major oil producers about a proposed deal to scale back production.
Traders are focused on a coming meeting of the Organization of the Petroleum Exporting Countries scheduled for Nov. 30, with bets around the outcome driving moves in prices over the past few weeks.
Brent crude, the global oil benchmark, fell 0.64% at $46.64 a barrel on London's ICE Futures exchange. On the New York Mercantile Exchange, West Texas Intermediate futures were trading down 0.79% at $45.44 a barrel.
Crude prices recently came down from a previous rally that had been motivated by increased diplomatic efforts from major oil producers fueling rising expectations of an OPEC deal.
"The chances are increasing of getting an OPEC agreement. The level of involvement from Saudi Arabia is getting intense and it increases the odds of having an agreement by the end of the month," said Olivier Jakob, an analyst from the Switzerland-based consultancy Petromatrix.
OPEC members have proposed trimming collective output to between 32.5 million and 33 million barrels a day. The cartel pumped a record 33.83 million barrels a day in October.
The latest diplomatic push is expected later this week, with a coming meeting planned between Saudi Arabia's energy minister and his Russian counterpart, according to people familiar with the matter.
Traders are also looking ahead to upcoming data on U.S. inventories from the Energy Information Administration, on Wednesday. That data is expected to show inventories rising 1.1 million barrels in the week ended Nov. 11, according to a survey of analysts by The Wall Street Journal. Refinery use is seen rising 0.8% on average to 87.9% of capacity.
The American Petroleum Institute said late Tuesday that oil stockpiles last week rose 3.7 million barrels. Gasoline stocks fell 155,000 barrels, while distillate stocks rose 3 million barrels, according to a market participant.
Overall oil demand isn't going to abate soon, the International Energy Agency said in a report on Wednesday.
Despite pledges made at the Paris climate change summit last year to cap greenhouse-gas emissions, global oil demand won't reach its peak before 2040 because there are few alternatives to power transportation said the IEA.
Nymex reformulated gasoline blendstock--the benchmark gasoline contract--rose 0.73% to $1.34 a gallon. ICE gasoil changed hands at $421 a metric ton, up $4 from the previous settlement.
Selina Williams contributed to this article.
Write to Neanda Salvaterra at email@example.com and Dan Strumpf at firstname.lastname@example.org
(END) Dow Jones Newswires
November 16, 2016 06:04 ET (11:04 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.