Oil prices in the international markets fell on Wednesday as doubts were cast on whether OPEC and Russia would agree on extending cuts in November 30th meeting in Vienna. Prices have seen a significant surge in the recent months as a geopolitical tensions, increasing demand and output cuts have propped up prices of crude benchmarks.
However, the sudden drop in prices came after American Petroleum Institute reported a buildup in US Crude inventories. U.S. Crude inventories rose up by 1.8 million barrels in the week ended November 24 to 457.3 million barrels.
U.S. West Texas Intermediate (WTI) crude futures were at $57.67 a barrel at 0427 GMT, down 32 cents, or 0.6 percent below their last settlement.
Dubai Crude futures were at 60.804 a barrel at 0121 PST, down 10 cents below their last settlement.
Oil prices have received a broad lift up this year, with Brent up by 40 percent since mid-2017 largely due to an effort by OPEC and a group of other producers, led by Russia, to withhold 1.8 million barrels per day of output.
OPEC and Russia are expected to extend their supply cuts for the whole of 2018 but with an option to review the deal in June, OPEC sources said on Tuesday, after Moscow expressed concerns the market could overheat.
On the demand front, healthy global economy has also been helping oil markets back into balance after years of oversupply.