PHOTO
* OPEC members to hold informal talks at 1400 GMT
* Meeting could lay foundation for output agreement in Nov
* Market focused on EIA stocks data later on Wednesday
(Adds analyst comments, details on potential OPEC deal in November)
By Ahmad Ghaddar and Swetha Gopinath
LONDON, Sept 28 (Reuters) - Oil prices rose on Wednesday, after sharp losses in the previous session, as the focus shifts to a potential output-curbing deal from OPEC later this year and a surprise drawdown in U.S. crude stocks.
Brent crude
LCOc1
was up 59 cents to $46.56 a barrel at 1235 GMT after settling down $1.38 on Tuesday.
U.S. West Texas Intermediate (WTI) crude
CLc1
was up 53 cents at $45.20 a barrel after closing $1.26 a barrel lower the previous day.
Although chances of a deal being finalised in Algeria today are slim, the Organization Of Petroleum Exporting Countries (OPEC) might still agree an oil output-limiting deal later this year.
OPEC members will hold informal talks at 1400 GMT on Wednesday.
"The market is still trying to figure out and price the outcome of the meeting at Algeria," said Olivier Jakob, oil analyst at Petromatrix.
Saudi Energy Minister Khalid al-Falih said on Tuesday Iran, Nigeria and Libya would be allowed to produce "at maximum levels that make sense" as part of any output limits which could be set as early as the next OPEC meeting in November.
That represents a strategy shift for Riyadh, which has previously said it would reduce output only if every other OPEC and non-OPEC producer followed suit. Iran has said it should be exempt from such limits because its production is recovering after the lifting of European Union sanctions earlier this year.
Iranian Oil Minister Bijan Zanganeh said on Wednesday OPEC producers were still trying to reach a deal on output limits and that under any such pact the Islamic Republic would agree to curtail its production "at close to 4 million barrels per day".
Its production has stagnated at 3.6 million bpd.
"The best that can be...hoped for at this afternoon's meeting is the laying of foundations for a deal when the cartel next meet in November," Stephen Brennock of brokerage PVM Oil said in a note.
Commerzbank also pointed to the possibility of slowing global demand as a bearish factor for oil prices.
The World Trade Organization cut its forecast for global trade growth this year by more than a third on Tuesday.
Data from the American Petroleum Institute showed crude stocks fell 752,000 barrels in the week to Sept. 23 to 506.4 million barrels, compared with a forecast of a 2.8 million barrel build by analysts polled by Reuters.
API/S
Official data from the U.S. Energy Information Administration will be released at 1430 GMT.
EIA/S
(Additional reporting by Keith Wallis in Singapore; Editing by Susan Thomas/Ruth Pitchford) ((Ahmad.Ghaddar@thomsonreuters.com; +442075424435; Reuters Messaging: ahmad.ghaddar.thomsonreuters.com@reuters.net))
* Meeting could lay foundation for output agreement in Nov
* Market focused on EIA stocks data later on Wednesday
(Adds analyst comments, details on potential OPEC deal in November)
By Ahmad Ghaddar and Swetha Gopinath
LONDON, Sept 28 (Reuters) - Oil prices rose on Wednesday, after sharp losses in the previous session, as the focus shifts to a potential output-curbing deal from OPEC later this year and a surprise drawdown in U.S. crude stocks.
Brent crude
U.S. West Texas Intermediate (WTI) crude
Although chances of a deal being finalised in Algeria today are slim, the Organization Of Petroleum Exporting Countries (OPEC) might still agree an oil output-limiting deal later this year.
OPEC members will hold informal talks at 1400 GMT on Wednesday.
"The market is still trying to figure out and price the outcome of the meeting at Algeria," said Olivier Jakob, oil analyst at Petromatrix.
Saudi Energy Minister Khalid al-Falih said on Tuesday Iran, Nigeria and Libya would be allowed to produce "at maximum levels that make sense" as part of any output limits which could be set as early as the next OPEC meeting in November.
That represents a strategy shift for Riyadh, which has previously said it would reduce output only if every other OPEC and non-OPEC producer followed suit. Iran has said it should be exempt from such limits because its production is recovering after the lifting of European Union sanctions earlier this year.
Iranian Oil Minister Bijan Zanganeh said on Wednesday OPEC producers were still trying to reach a deal on output limits and that under any such pact the Islamic Republic would agree to curtail its production "at close to 4 million barrels per day".
Its production has stagnated at 3.6 million bpd.
"The best that can be...hoped for at this afternoon's meeting is the laying of foundations for a deal when the cartel next meet in November," Stephen Brennock of brokerage PVM Oil said in a note.
Commerzbank also pointed to the possibility of slowing global demand as a bearish factor for oil prices.
The World Trade Organization cut its forecast for global trade growth this year by more than a third on Tuesday.
Data from the American Petroleum Institute showed crude stocks fell 752,000 barrels in the week to Sept. 23 to 506.4 million barrels, compared with a forecast of a 2.8 million barrel build by analysts polled by Reuters.
Official data from the U.S. Energy Information Administration will be released at 1430 GMT.
(Additional reporting by Keith Wallis in Singapore; Editing by Susan Thomas/Ruth Pitchford) ((Ahmad.Ghaddar@thomsonreuters.com; +442075424435; Reuters Messaging: ahmad.ghaddar.thomsonreuters.com@reuters.net))
