Oil Futures Recover From Early Weakness in Asian Trade

Oil futures reverse early weakness in Asian trade Wednesday, extending an overnight rebound following Saudi Arabia's plans to cut crude exports next month.

--November Nymex light, sweet crude oil on the New York Mercantile Exchange was recently up 0.3% at $51.06 a barrel in the Globex trading session. Brent was up 0.1% at $56.69 a barrel.

--In recent months, traders have watched the level of shipments by the Organization of the Petroleum Exporting Countries and others just as closely as they monitor their levels of production. This comes as OPEC-led producers attempt to reduce global oversupply with an output cut. Investors will also be monitoring the weekly U.S. inventory data to assess the supply-demand situation.

--Russian and Saudi Arabian officials have signaled that they were ready to extend an ongoing oil production cut deal to the end of 2018, but analysts however are skeptical that other key oil suppliers would agree to such an extension. Many countries that are part of the OPEC cut deal continue to grapple with large fiscal imbalances, says FocusEconomics. Moreover, it adds that U.S. shale producers will likely boost output to take advantage of higher prices.

Write to Biman Mukherji at biman.mukherji@wsj.com

(END) Dow Jones Newswires

October 11, 2017 00:28 ET (04:28 GMT)