“Now we’re starting to get uncertainty on both the trade and production cut fronts and the market is giving back those gains,” said Gene McGillian, director of market research at Tradition Energy in Stamford, Connecticut. “Some of the optimism surrounding the easing of trade tensions seems to be evaporating.”
International Brent crude oil futures rose 39 cents to $62.08 by 2:29 p.m. ET, after earlier touching a session high of $63.58. U.S. West Texas Intermediate (WTI) crude futures were up 36 cents at $53.31, after gaining as much as 3 percent at $54.55.
Ahead of the OPEC meeting, Saudi Oil Minister Khalid Al-Falih said it was too soon to be certain that OPEC and other oil exporters would cut production because the terms of a deal remain unresolved.
Falih said he thought the market was oversupplied but he cautioned that all members of OPEC and its allies needed to come together for a cut to go ahead.
“A cut in OPEC and Russia production of 1.3 million bpd will be required to reverse the ongoing counter-seasonally large increase in inventories,” Goldman Sachs said in a note.
It added that it expected a joint effort by OPEC and Russia to withhold supply to push Brent oil prices “above the mid-$60 per barrel level.”
Helping OPEC in its efforts to rein in emerging oversupply was an order on Sunday by the Canadian province of Alberta for producers to scale back output by 325,000 bpd until excess crude in storage is reduced.