LONDON: Brent crude oil steadied above US$78 a barrel yesterday as reports that oil producers would agree to cut output next week offset weak economic data from China and Europe.
Ministers from the Organisation of the Petroleum Exporting Countries will meet in Vienna on November 27 to decide how to respond to a collapse in oil prices that have fallen more than 30 percent in five months.
Brent was up 25 cents at US$78.35 a barrel by 1315GMT after closing 37 cents down in the previous session. US crude was down 15 cents at US$74.43 a barrel.
Oil prices have come under intense pressure over the last few months as North American shale oil production of high quality, light oil has overwhelmed demand at a time of lacklustre economic growth in many parts of the world.
“We’ve had disappointing data from China and Europe, and US crude inventories are high, so there’s plenty of supply, but tepid demand,” said Michael Hewson, chief market analyst at CMC Markets. Reuters