Crude oil ticks lower on tepid growth

NEW YORK, Dec. 1 (UPI) -- Lingering economic concerns pulled on crude oil prices Tuesday amid anticipation over the next move by the Organization of Petroleum Exporting Countries.

Crude oil prices inched lower in early trading following a minor rally that ended November. Brent crude oil was down 0.8 percent in early Tuesday trading to $44.25 per barrel. West Texas Intermediate, the U.S. benchmark for crude oil prices, mirrored Brent's drop, selling for $42.32 per barrel.

Crude oil prices started a move below $100 per barrel in mid-2014 as an increase in production, largely from U.S. shale basins, pushed markets toward the supply side amid slow global economic recovery. In late 2014, downward pressure increased when members of the Organization of Petroleum Exporting Countries committed to stable output levels.

One year and $26 per barrel later and all eyes are on Friday's meeting of OPEC ministers in Vienna. Arriving in the Austrian capital Tuesday, Saudi Oil Minister Ali al-Naimi suggested there was a wait-and-see position in place.

"We will listen, and then decide [what's next]," he was quoted by the Wall Street Journal as saying.

OPEC members are expected to hold to existing policies even as Iran aims to increase its production in a post-sanctions era and dynamics within the 12-member group shift with the formal return of Indonesia as a party to OPEC.

On the economic front, the European economy is showing slow signs of recovery. The seasonally-adjusted rate of unemployment in the region was 10.7 percent in October, down 0.1 percent from September and 0.8 percent lower than one year ago.

In China, the manufacturing purchasing managers' index of 49.6 in November was a 39-month low. A reading below 50 indicates a contraction in factory activity. A weakened China is contributing to lower crude oil prices.

Nevertheless, in welcoming the Chinese currency to its reserve basket, International Monetary Fund Managing Director Christine Lagarde said there were signs of positive momentum.

Including the yuan is "a recognition of the progress that the Chinese authorities have made in the past years in reforming China's monetary and financial systems," she said.