SINGAPORE (Reuters) – Oil prices fell in Asian trade on Tuesday amid uncertainty over a possible extension of production cuts by major oil producers and expectations of a larger supply as to restart the Keystone pipeline.
Brent LCOc1 futures fell to $ 63.72 a barrel 0753 GMT, 12 cents less, or 0.2 percent, since its previous close.
U.S. Intermediate West Texas futures (WTI) fell 29 cents, or 0.5 percent, to $ 57.82 a barrel, after falling 1.4 percent in the last session.
U.S. Crude touched $ 59.05 a barrel on Friday, the highest level since mid-2015, boosted by the Keystone pipeline cut, one of Canada's main export routes to the United States.
But TransCanada Corp ( TRP.TO ) said this week that it would restart the 590,000 barrel per day at reduced pressure pipeline later on Tuesday after obtaining approval from US regulators. UU
Uncertainty about Russia's determination to join other major oil producers to expand the oil production margin beyond next March has weighed on the oil markets.
Members of the Organization of the Petroleum Exporting Countries (OPEC) and other key producers, including Russia, will meet on November 30 to discuss whether to continue with the cuts after they agreed last January to retain 1.8 million bpd of production.
UAE Energy Minister Suhail bin Mohammed al-Mazroui said on Tuesday that while the meeting would not be easy, he was personally optimistic that the producers would reach an agreement that would serve the market.
Saudi Arabia's energy minister Khalid al-Falih said the oil market should wait for the outcome of this week's OPEC meeting when asked in Dubai on Tuesday about how long producers could extend their cuts.
Russia's economy was negatively affected in October by continued cuts, which saw Moscow agree to reduce production by 300,000 bpd, Economy Minister Maxim Oreshkin said on November 23.
Goldman Sachs said the outcome of the meeting was "much more uncertain than usual," adding that the market faced downside risks.
"We believe that the risks for oil prices are biased downwards this week as we believe that current prices, delivery times and positioning already reflect a high probability of a nine-month extension," he said. Bank.
The consultant Wood Mackenzie said that it seemed that the producers had almost concluded an agreement to extend the cuts until the end of next year.
"(But) if the production cut-off agreement ends in March 2018, our forecast shows a year-on-year increase of 2.4 million bpd in the global oil supply for 2018," said Ann-Louise Hittle, vice president , macro oils, said in a note on Monday.
Some traders are beginning to consider the possibility that, while producers will agree to extend the curbs, the scale of production cuts will be reduced from the current 1.8 million bpd, said Ric Spooner at CMC Markets in Sydney .
"It would provide a continuous certainty for the market, avoiding the mbadive sell-off that could accompany the departure of a cold turkey … (and) mitigate the risk to OPEC and Russia of precipitating further loss of market share encouraging competitors with higher prices, "Spooner said.
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