* Analysts doubt a planned OPEC-led cut will rebalance
* U.S. crude prices firmer on tighter fuel market
By Henning Gloystein
SINGAPORE, Oct 14 International oil prices
dipped on Friday over doubts that a planned cut in crude
production could be achieved on a scale sufficient to rebalance
a market that has been oversupplied for two years.
International Brent crude oil futures were trading
at $51.85 per barrel at 0050 GMT, down 18 cents, or 0.35
percent, from their previous close.
Traders said the dip was a result of scepticism that a
planned oil output cut by the Organization of the Petroleum
Exporting Countries (OPEC) and potentially non-OPEC member
Russia would be sufficient to rein in a global production
overhang which has been ongoing for two years and still stands
around half a million barrels per day (bpd) in excess of
"Talk of cutting output in some quarters appears to be
morphing into talks of a freeze in supply. We are doubtful that
OPEC's efforts, even if successful in achieving a targeted
32.5 million bpd in collective output, will prove sufficient to
materially alter the global oil balance and deliver a
substantial reduction in oil inventories," French bank BNP
Paribas said in a note to clients.
OPEC's crude oil production stood at a record 33.6 million
bpd in September PRODN-TOTAL.
U.S. crude oil prices, however, edged up on the back of
struggling domestic output and tightening fuel supplies.
After falling below $50 a barrel on Thursday, U.S. West
Texas Intermediate (WTI) crude futures were trading at
$50.47 per barrel at 0050 GMT, up 3 cents from their last close.
"Oil prices (in the U.S.) rose overnight despite rising
stockpiles in the U.S., as fuel supplies in the U.S. fell to the
lowest level this year," ANZ bank said in a morning note on
The U.S. Energy Information Administration (EIA) reported a
drop of 3.7 million barrels for distillates, which include
diesel and heating oil, and a 1.9-million barrel decline for
However, U.S. crude stocks rose much more than analysts
expected last week, the first gain in six weeks.
Crude inventories swelled by 4.9 million
barrels in the week to Oct. 7 to 474 million barrels. That
followed five consecutive weeks of drawdowns.
(Reporting by Henning Gloystein; Editing by Joseph Radford)