Oil prices rose on Sept. 28, after sharp losses in the previous session, as industry data showed a surprise draw in U.S. crude stocks, although worries over a lack of agreement among producers to curb output kept a lid on gains.
Brent crude rose 28 cents to $46.25 a barrel (bbl) by 4:05 a.m. CT (9:05 GMT) after settling down $1.38 on Sept. 27. West Texas Intermediate (WTI) crude was up 20 cents at $44.8/bbl after closing $1.26/bbl lower the previous day.
Data from the American Petroleum Institute showed crude stocks fell 752,000 bbl in the week to Sept. 23 to 506.4 MMbbl, compared with a forecast of a 2.8 MMbbl build by analysts polled by Reuters.
Official data from the U.S. Energy Information Administration will be released at 9:30 a.m. CT (14:30 GMT).
Members of OPEC will hold informal talks at 9 a.m. CT (14:00 GMT) in Algiers on Sept. 28 but the chances of the group reaching a deal on curbing output to prop up prices appear to be slim.
RELATED: OPEC: Saudis Soften Oil Stance On Iran, But Deal Still Elusive
Iran rejected an offer from Saudi Arabia to limit its oil output in exchange for Riyadh cutting supply, and Iranian oil sources said Tehran wants to be allowed to produce 12.7% of the group's output.
But Saudi energy minister Khalid al-Falih said the gap in views between OPEC members was narrowing, offering some hope that a deal could be reached at a later time.
"The best that can be...hoped for at this afternoon's meeting is the laying of foundations for a deal when the cartel next meet in November by which time Iranian oil output may well have reached the all-important 4 MMbbl/d mark," Stephen Brennock of brokerage PVM Oil said in a note.
Iranian output has stagnated at 3.6 MMbbl/d.
Even if Riyadh and Tehran reach an agreement on adjusting output levels, OPEC will still have to contend with the ambitions of other members to boost their output.
"It is easy to forget that Nigeria and Libya also want to be allowed to step up their output, which is likely to account for over 1 MMbbl/d," analysts at Commerzbank said in a note.
Commerzbank also pointed to the possibility of slowing global demand as a bearish factor for oil prices.
The World Trade Organization cut its forecast for global trade growth this year by more than a third on Sept. 27, reflecting a slowdown in China and falling levels of imports into the U.S.
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