Stacked rigs are seen along with other idled oil drilling equipment at a depot in Dickinson, North Dakota June 26, 2015. Reuters/Andrew Cullen
Crude oil prices were barely changed on Tuesday as traders bet on continued high production from the Organization of the Petroleum Exporting Countries (OPEC) ahead of its meeting later this week.
U.S. crude was trading at $41.93 a barrel at 0427 GMT on Tuesday, up 28 cents, but still down more than 10 percent since the start of November.
Internationally traded Brent futures were at $44.77 a barrel, up 16 cents.
“There is a real risk that we could see lower prices,” said Ric Spooner, chief market analyst at Sydney’s CMC Markets. “The prospects for demand-growth are not large enough to go into the supply overhang.”
China’s economy showed renewed signs of weakness, with its manufacturing falling to a three-year low, an official survey showed on Tuesday. Although Japan’s manufacturing accelerated, it was at low levels.[S7N0Z802A]
In physical markets, Dubai crude fell to the lowest since December 2008, averaging $41.691 per barrel for November, according to price-reporting agency Platts.
OPEC’s policy meeting on Friday is not expected to change the organization’s strategy, adopted last year, of pumping oil vigorously to protect its market share against U.S. shale drillers and other producers.
ANZ said on Tuesday it expected to see Saudi Arabia, OPEC’s biggest producer, keep oil production steady in the face of declining prices.
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