Oil prices fell on Wednesday as a global supply overhang weighed on markets, while talk of a potential producer meeting to discuss propping up prices was largely expected by analysts to have no impact on supplies.
U.S. West Texas Intermediate (WTI) crude oil futures CLc1 were trading at $42.43 per barrel at 0657 GMT, down 34 cents from their last settlement, or 0.79 per cent.
International Brent crude futures LCOc1 were at $44.62 per barrel, down 36 cents, or 0.8 per cent.
Traders said that markets were being weighed down by an ongoing supply overhang in crude and refined fuel products, while a suggested meeting by oil producers was unlikely to result in a significant market tightening.
“Oil eased lower as another round of proposed production freeze talks by OPEC failed to excite investors. An upgrade in U.S. oil production forecasts by EIA also weighed on sentiment. EIA is now expecting U.S. output to reach 8.31 million barrels per day in 2017, up from its forecast of 8.2 million barrels per day in July,” ANZ Bank said on Wednesday.
Venezuela, a member of the Organisation of the Petroleum Exporting Countries (OPEC), is trying to drum up support for a producer meeting to decide measures that would buoy oil prices.