NEW YORK, Aug. 17 (UPI) -- Crude oil prices migrated toward positive territory after steep overnight losses Wednesday emerged as analysts mulled the prospects of OPEC price action.
Crude oil prices surged more than 10 percent in the last week on signs the gap between supply and demand was narrowing. Further support for a rally in crude oil prices emerged late last week on suggestions, backed by official comments during the weekend, that members of the Organization of Petroleum Exporting Countries would consider artificial action to stimulate the markets.
Crude oil prices were down more than 1 percent in overnight trading after analysts started weighing in more vocally on the prospects for OPEC action. A January proposal to freeze production at levels that were already robust collapsed amid multilateral differences. With OPEC now producing at even higher levels, Jamie Webster, an energy analyst with Columbia University, told the Financial Times that "I don't see anything to make me think outcome is going to be different this time."
The price for Brent crude oil, trading now in the October contract, was relatively flat in the moments before the opening bell in New York to $49.28 per barrel. West Texas Intermediate, the U.S. benchmark still in the September contract, was off 0.5 percent to $46.35 per barrel.
Prices may be influenced later in the day by official data on supply and demand indicators from the U.S. Energy Information Administration. Industry data from the American Petroleum Institute show inventory levels on the decline for oil, but increasing for fuel products.
EIA data showing a decline in U.S. shale oil production could add to sentiments on balance, though most energy companies said in their latest earnings reports they were preparing to increase output as operators grow more accustomed to working in an era of lower crude oil prices.
A report early this week from S&P Global Platts said data may show a decline in crude oil stockpiles, though EIA data in the past has indicated inventories are still at multi-year highs.
