Oil prices were down for the second time in a row due to the volatile trade in the previous session as investors trade carefully waiting for the result of the OPEC meeting which discusses a deal to further cap crude oil productions. The cautious mood overshadowed reports that the Saudi Arabia is planning to scale back exports to Asia next month.
On the New York Mercantile Exchange, West Texas Intermediate futures were down by 22 cents, or a 0.5% slip in the market and was being traded at $49.17 per barrel. While the Brent Crude, the global benchmark, reversed its gains to finish at 0.4% lower and was trading at $52.14 per barrel.
Saudi Arabia, which is the largest crude oil producer, is expected to cut sales of oil supplies to Asia which has increased by up to 10% in September to tackle the global crude glut, according to multiple reports yesterday.
Saudi Arabia first announced the plan to cut late last month, limiting its oil exports to 6.6 million barrels a day in August. That statement came as the OPEC has struggled to reduce an oversupply of oil in the global market that has weighed in prices for three years.
Investors are also keeping an eye on the weekly U.S. inventory data, as well as the monthly reports from the OPEC.
Nymex, a gasoline blendstock, fell by 0.6% to settle at $1.6208 per gallon. While Natural gas for September Deliveries were up by 2.1 cents or 0.8% to be sold at $1.8220 per million British thermal units.