LONDON—Oil fell on Tuesday, reversing steep gains made in the past two sessions, as investors turned cautious ahead of a meeting of OPEC+ this Sunday when the producer group may discuss deepening supply cuts due to slowing global growth.
Brent crude futures fell 80 cents, or 1 percent, to $81.52 a barrel by 1017 GMT, while U.S. West Texas Intermediate crude futures also dropped by 80 cents, or 1 percent, to $77.03.
OPEC+ is likely to extend or even deepen oil supply cuts into next year, eight analysts have predicted.
RBC Capital analyst Helima Croft said: “We see some scope for the group to do a deeper reduction, but we would anticipate that Saudi Arabia would seek additional barrels from other members to share the burden of the adjustment.”
Oil has dropped about 16 percent since late September as crude output in the U.S., the world’s top producer, held at record highs, while the market was concerned about demand growth and economic slowdown.
The latest U.S. inventory reports are forecast to show crude and gasoline stockpiles rose last week, according to a Reuters poll on Monday. This week’s first report from the American Petroleum Institute is out later on Tuesday.
