Oil inched lower on Wednesday, after falling 5 percent a day ago to close below $60 for the first time since March 2007, as weakening energy demand more than offset news of more supply reductions. News that Opec may cut supplies by an additional 1 million barrels per day (bpd) when it meets in Algeria next month did little to prevent the downward spiral that has knocked 60 percent off oil's value from a record high of over $147 in mid-July.
US crude for December delivery was trading 14 cents lower at $59.19 by 0550 GMT. In the last session, the market settled down $3.08 at $59.33 a barrel, its lowest settlement in 20 months. London Brent crude shed 6 cents at $55.65 a barrel.
This came even after Energy Minister Abdullah al-Attiyah told Reuters last week that Qatar had cut crude oil exports to Asia by about 40,000 bpd from this month in line with the Opec agreement. US weekly inventory data was expected to show an 800,000-barrel rise in crude stocks last week as demand continues to slow, a Reuters poll of analysts found.
Distillate stocks should rise by 500,000 barrels and gasoline by 800,000 barrels, the poll showed. The data will be released on Thursday, a day later than usual due to the US Veterans' Day holiday on Tuesday.