NNA – 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.
Both contracts had climbed about 2% on Monday after three OPEC+ sources told Reuters that the group, made up of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, was set to consider whether to makenbsp;additional oil supply cutsnbsp;when it meets on Nov. 26.
Brent crude futures fell 80 cents, or 1%, to $81.52 a barrel by 1017 GMT, while U.S. West Texas Intermediate crude futures also dropped by 80 cents, or 1%, to $77.03.
quot;No doubt that the upcoming meeting of OPEC+ energy ministers will be one of the most pivotal of recent times as investors are searching for clues whether the hints and rumours will be backed up by action,quot; said Tamas Varga of oil broker PVM.
Short-term speculators took profit on WTI after several indicators were overbought on technical charts, Singapore-based OANDA analyst Kelvin Wong said.
OPEC+ is likely to extend or even deepen oil supply cuts into next year,nbsp;eight analysts have predicted.
RBC Capital analyst Helima Croft said: quot;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.quot;–Reutersnbsp;
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