WTI steadies near $ 50, eyes on Saudi-Russia ‘epochal’ meeting

WTI (US oil futures on NYMEX) consolidates yesterday’s sharp sell-off to ten-day troughs, as markets brace for the key meeting between the Saudi King and Russia President Vladimir Putin, which marks an historic first visit to Russia by a monarch of the Gulf kingdom.

Oil traders refrain from creating fresh position in the black gold as both leaders meet to discuss an extension to the OPEC oil output cut deal reached last November.

Oil extended its sell-off into a third day on Wednesday and struck ten-day lows of $ 49.76, after the EIA report showed that the US crude exports jumped to 1.98 million bpd last week, surpassing the 1.5 million bpd record set the previous week. The rise in crude exports overshadowed a bigger-than expected draw seen in the US crude stockpiles.

Moreover, the sentiment was also hit by the reports that Libya’s biggest oilfield Sharara restarted production on Wednesday morning after a 2-day shutdown. Libyan oil source: Production at Libya’s Sharara oilfield restarted on Wednesday

At the time of writing, WTI trades flat at $ 50.01, while Brent steadies near $ 55.80 levels.