FILE PHOTO: Oil tankers are waiting to dock at the Tupras refinery near the northwestern Turkish city of Izmit, Turkey, June 28, 2017. REUTERS / Umit Bektas / File Photo
SINGAPORE (Reuters) – The oil markets have been cautiously opened Tuesday, with many traders who are reluctant to take large new positions prior to the G20 meeting in Argentina this weekend and the OPEC meeting in Austria next week.
US West Texas Intermediate (WTI) raw futures CLc1 amounted to $ 51.52 per barrel at 0011 GMT, a decrease of 11 cents or 0.2 percent over their last settlement.
International Brent crude oil futures that LCOc1 still had to trade, but which at the end of the previous day after Friday's price increase barely hung at $ 60 per barrel.
Since their most recent peaks in early October, oil prices have lost almost a third of their value, severely affected by an emerging supply surplus and by widespread weakness in the financial markets.
"The recent weakness seems to have been prompted by a broader, imminent disaster amid weak stocks, geopolitics, ensuing mitigating demand and increasing supply," said Jack Allardyce, oil analyst at financial services provider Cantor Fitzgerald Europe.
Looking ahead, Allardyce said: "Much depends" on the outcome of the Group meeting of 20 (G20) in Buenos Aires, where the United States and China are expected to address their trade disputes, and a meeting of the Organization of the Petroleum Exporting Countries (OPEC).
The leaders of the G20 countries, which are the leading economies of the world, meet on November 30 and December 1, with the trade war between Washington and Beijing at the top of the agenda.
The 175th annual meeting of the OPEC takes place at the head office in Vienna on 6 December and the group will discuss its output policy with some non-OPEC producers, including Russia.
"It looks like the market has already decided that the 1.4 million barrels of oil cut per day cut to production is not enough to offset the decline in demand growth expectations, so if that is the number, then it is the current (oil price) level could remain in the new year, or we might see some more weakness, "Allardyce said.
Reporting by Henning Gloystein; editing by Richard Pullin