Oil slips after U.S. inventory build, but possible OPEC cuts support market

By Koustav Samanta
SINGAPORE, Oct 23 (Reuters) - Oil slipped on Wednesday after
U.S. industry data showed a bigger-than-expected build in crude
stockpiles, but possible deeper production cuts coming from OPEC
and its allies prevented a further slide in prices.
International benchmark Brent crude futures LCOc1 dropped
28 cents, or 0.47%, to $59.42 a barrel by 0123 GMT on Wednesday.
West Texas Intermediate (WTI) crude futures CLc1 fell 40
cents, or 0.73%, to $54.08 per barrel.
U.S. crude stocks rose by 4.5 million barrels to 437 million
barrels in the week ended Oct. 18, compared with analyst
expectations for a gain of 2.2 million barrels, data from
industry group the American Petroleum Institute showed. API/S
Inventory data from the U.S. Energy Information
Administration (EIA) is due later on Wednesday. EIA/S
The Organization of the Petroleum Exporting Countries (OPEC)
is mulling whether to deepen production cuts amid concerns of
weak demand growth next year, underpinning prices after helping
to lift both benchmarks more than 1% in the previous session.

"Crude oil prices jumped sharply (on Tuesday) on news that
OPEC was considering further production cuts," ANZ Research said
in a note, adding to earlier gains in the previous session as
many companies posted improved outlooks.
OPEC and other oil producers including Russia, which have
pledged to cut production by 1.2 million barrels per day (bpd)
until March 2020, are scheduled to meet again on Dec. 5-6.
OPEC's de facto leader Saudi Arabia, however, wants to focus
first on boosting adherence to the group's output reduction pact
with Russia and other non-members before committing to more
cuts, sources from the oil-producing club said.
Meanwhile, easing trade tensions between China and the
United States, the world's two largest economies, were also
helping to cushion overall sentiment for oil, traders said.
U.S. President Donald Trump said earlier this week that
efforts to end the trade war with China were going well, while a
similar view was echoed by Chinese Vice Foreign Minister Le
Yucheng on Tuesday.
Washington and Beijing are trying to finalise the first
phase of a trade agreement for Trump and Chinese President Xi
Jinping to sign in November at the Asia-Pacific Economic
Cooperation summit in Chile.