USA crude oil inventories up last week: API_china

USA crude oil inventories up last week: API_china

Futures in NY rose above $41 a barrel after earlier sliding as much as 1.4% Tuesday. But "mixed messages" between Trump and Senate Republicans - who have opposed a package of $1.8 trillion or more - could pose a hurdle, Pelosi said. "People need jobs to support demand in an otherwise seasonally weaker period".

Brent crude futures dropped by $0.34 or 0.8% to $42.28 a barrel while US West Texas Intermediate (WTI) futures fell by $0.15 cents touching $40.68, Reuters reported.

Hopes for a new USA stimulus package lent some support to prices.

"Demand recovery is uneven".

Minister of Energy Abdelmadjid Attar insisted Monday on the importance, for the signatory countries of the OPEC and non-OPEC Declaration of Cooperation, to honor the commitments to reducing the production in order to rebalance the oil market. "We're also going to need more clarity where the fiscal plan is going". Prince Abdulaziz bin Salman called on the group to be proactive in the face of uncertain demand. OPEC+ would have to change its mind and announce a reversal of its planned output increase from January, and a working vaccine would have to be implemented before we'd see a breakout to the upside of this current rangebound trade.

OPEC+ sources said the group was unlikely to recommend immediate action on Monday. "I want to assure you that the OPEC, non-OPEC partnership will continue to do what it knows best, by ensuring that we don't relapse into this nearly historic plunge that we saw", Barkindo said, reports, However, according to a confidential document seen by Reuters the other day, OPEC+ is concerned about the second wave of the pandemic, as well as the jump in output by Libya.

Under the document's base case, OECD oil stocks are expected to stand slightly above the five-year average in the first quarter of 2021, before falling below that level for the rest of the year.

Adding to supply worries, crude inventories rose by 584,000 barrels in the week to October 16 to about 490.6 million barrels, data from industry group the American Petroleum Institute showed, compared with analysts' expectations in a Reuters poll for a draw of 1 million barrels.

In the docket, the API reported a nearly 600K weekly build in United States crude oil supplies late on Tuesday vs. a forecasted drop of almost 2M barrels.

Pioneer Natural Resources in talks to buy rival US shale driller Parsley Energy Inc., according to a person familiar with the matter.

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