Oil prices fell on Wednesday as investors await cues from a meeting of the Organization of the Petroleum Exporting Countries (OPEC) and allies, including Russia, on Thursday.
Brent crude futures for June settlement dropped 0.4 percent to $63.92 per barrel, while U.S. West Texas Intermediate (WTI) crude futures were down 0.4 percent at $60.30.
As coronavirus infections continue to rise globally and amid new pandemic lockdowns, the oil cartel is expected to take call on production cuts during the meeting.
It is widely expected that OPEC+ will stick with its tight production curbs for another month to safeguard the recovery in prices.
Ahead of the decision, OPEC+ has lowered its 2021 oil demand growth forecast by 300,000 barrels per day reflecting concerns about the market’s recovery.
Meanwhile, the American Petroleum Institute reported late Tuesday that U.S. crude supplies rose by 3.9 million barrels for the week ended March 26, compared with expectations for a much smaller inventory build of 107,000 barrels.
Data on U.S. inventories are due from the U.S. Energy Information Administration later in the day.