Oil prices drifting aimlessly in early Wednesday trading

Prices could be influenced later in the day by a Bank of Canada rate decision.

Daniel J. Graeber 
Oil prices drifted between gains and losses in early Wednesday trading as investors guessed at what will happen next after a volatile couple of weeks. (UPI Photo/Monika Graff)
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Crude oil prices moved in volatile territory early Wednesday as investors waited for key banking and industry data as anticipation over production moves waned.
Iranian President Hassan Rouhani reiterated the country's stance on production levels, telling the visiting secretary-general of the Organization of Petroleum Exporting Countries that market stability was a common interest.
"Instability and the fall in oil prices will damage member countries," he was quoted as saying by SHANA, the Iranian Oil Ministry's news website. "We hope that in light of prudence and cooperation and coordination among the OPEC members, the oil market will be stabilized with fair prices."
He maintained, however, that a "fair quota" should be upheld for all OPEC members.
Oil producers are slated to review production levels during a meeting later this month in Algeria. Iran said it would support any effort to stabilize a market characterized by oversupply provided it has room to regain a market share lost to sanctions.
SHANA on Wednesday published commentary that said Iran by 2025 aims to be the largest crude oil producer in OPEC behind Saudi Arabia, its geopolitical rival.
The price for Brent crude oil wobbled between heavy gains and losses, but started the day up by 0.1 percent to $47.31 per barrel. West Texas Intermediate, the U.S. benchmark price for crude oil, was higher by 0.25 percent to open in New York at $44.94 per barrel.
Crude oil prices may be influenced later in the morning by a rate announcement from the federal Bank of Canada, where the economy is under pressure from the low price of oil and still reeling from the loss of production from wildfires in May.
In June, Bank of Canada Gov. Stephen S. Poloz said there is cause for some level of optimism, but continued patience is required.
Overseas, meanwhile, so-called Brexit concerns may resurface as Bank of England Gov. Mark Carney faces parliament to address questions about the health of the British economy.
Market watchers may be holding out to gauge whether or not the gap between supply and demand is narrowing. The U.S. Energy Information Administration publishes that data on Thursday. Last week, EIA reported a larger-than-expected build in crude oil inventories, suggesting the market is still tilted toward the supply side.
Oil prices drifting aimlessly in early Wednesday trading Reviewed by Bizpodia on 16:42 Rating: 5

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