Oil prices slip on uncertainty over OPEC output cuts

Oil prices slipped in Asian trade on Tuesday amid uncertainty over a possible extension of output cuts by major crude producers.

Brent futures had fallen to $63.72 a barrel by 0753 GMT, down 12 cents, or 0.2 per cent, from their previous close, reports Reuters.

US West Texas Intermediate (WTI) futures were down 29 cents, or 0.5 per cent, at $57.82 a barrel, after falling 1.4 per cent in the last session.

US crude touched $59.05 a barrel on Friday, fuelled by the outage of the Keystone pipeline, one of Canada’s main crude export routes to the United States.

But TransCanada Corp this week said it would restart the 590,000 barrel-per-day pipeline at reduced pressure later on Tuesday after getting approval from US regulators.

Uncertainty over Russia’s determination to join with other major oil producers in extending crude production curbs beyond next March has weighed on oil markets.

OPEC members and other key producers will meet on Nov. 30 to discuss whether to continue with the cuts after they agreed last January to withhold 1.8 million bpd of output.

United Arab Emirates energy minister Suhail bin Mohammed al-Mazroui said on Tuesday that while the meeting would not be easy, he was personally optimistic producers would reach an agreement that served the market.

Saudi energy minister Khalid al-Falih said the oil market should wait for the outcome of this week’s OPEC meeting when asked on Tuesday in Dubai about how long producers might extend their cuts.

Goldman Sachs said the outcome of the meeting was “much more uncertain than usual”, adding that the market faced downside risks.