UPDATE 9-Oil prices steady as market awaits clarity on OPEC+ output cuts

* OPEC+ failed to agree to hold meeting on Thursday
* OPEC+ may meet this week if laggards agree to comply -
sources
* U.S. fuel inventories soar as demand remains impaired

(Updates to settlement)
By Devika Krishna Kumar
NEW YORK, June 4 (Reuters) - Oil prices were little changed
in choppy trade on Thursday as investors awaited a decision from
top crude producers on whether to extend record output cuts.
The Organization of the Petroleum Exporting Countries (OPEC)
and allies led by Russia, a group known as OPEC+, are debating
when to hold ministerial talks to discuss a possible extension
of the existing cuts. Brent crude futures LCOc1 ended the session 20 cents, or
0.5% higher, at $39.99 a barrel after a volatile session. U.S.
West Texas Intermediate (WTI) crude CLc1 futures rose 12 cents
to $37.41.
Saudi Arabia and Russia, two of the world's biggest oil
producers, want to extend cuts of 9.7 million barrels per day
(bpd) that major producers agreed to in April. But a suggestion
by OPEC president Algeria to meet on Thursday was delayed amid
talks about poor compliance by some producers. OPEC/O
Saudi Arabia, Kuwait and the United Arab Emirates are not
planning to extend voluntary additional output cuts of 1.18
million bpd after June, indicating that crude supply could rise
next month regardless of any OPEC+ decision. "OPEC appears 'damned if they do and damned if they don't'
with regard to extended near term production reductions," Jim
Ritterbusch, president of Ritterbusch and Associates, said.
"Any decision to forgo any extension of current cuts would
easily unleash a near term selling spree while an agreement to
extend cuts beyond next month would have longer term bearish
implications as upward adjustments to third quarter shale
production forecasts would likely be required."
Concerns about a resurgence of U.S. shale production, which
is already showing signs of revival, was one reason Moscow and
Russia only backed prolonging cuts into July rather than
agreeing a longer extension, sources briefed on OPEC+ talks have
said. Meanwhile, U.S. government data on Wednesday showed large
increases in fuel inventories as demand remains impaired due to
the coronavirus pandemic. "Large oil inventory builds across the U.S., Europe and
Japan last week are weighing on oil prices," UBS analyst
Giovanni Staunovo said.
"Also the uncertainty if OPEC+ solves the impasse with
countries with a weak compliance level is not helping."
Striking a bullish note, however, Russia's Energy Minister
said the oil market in July could face a shortage of 3-5 million
bpd, Interfax news agency reported.