Oil Price Retreat With OPEC Meeting, U.S. Inventory, API Reports on Tap
Oil prices are retreating in early trading, with the July contract down 33 cents at $98.68 a barrel on the NYMEX as investors pull back ahead of a meeting of oil exporters, at which they are expected to raise production quotas. The contract lost $1.21 to settle at $99.01, Monday.
The Organization of Petroleum Exporting Countries meets Wednesday in Vienna. Some OPEC officials reportedly believe prices are too high and threaten the global economic recovery, according to the Associated Press. Saudi Arabia, the world's largest exporter, has indicated prices should be between $70 and $80 a barrel, although other exporters want prices between $100 and $120 a barrel.
The U.S. Energy Department is expected, today, to release its monthly short-term energy outlook and weekly petroleum inventories report. The American Petroleum Institute will release its report on oil stocks later today.
Analysts are looking for a 1.5 million barrel decline in crude oil supplies and a 1.1 million barrel increase in gasoline, according to a survey by Platts, which tracks the market.
The United States Oil exchange traded fund is at $38.73, down $0.27, or 0.69%.
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