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Brent crude futures were down $1.34, or 1.3%, at $99.20 a barrel
at 0815 GMT. West Texas Intermediate (WTI) crude futures fell
$1.28, or 1.4%, to $93.14 a barrel.
The premium for front-month Brent futures over barrels loading
in six months' time is at a three-month low, indicating worries
about current tight supply are abating.
Ministers for members of the Organization of the Petroleum
Exporting Countries and allies including Russia, together known
as OPEC+, meet on Wednesday from 1130 GMT.
OPEC+ sources told Reuters last week that the group would likely
keep output unchanged in September, or raise it slightly.
Saudi Arabia may be reluctant to beef up output at the expense
of OPEC+ partner Russia, hit by sanctions due to the Ukraine
conflict.
"Even if the OPEC+ group did declare a small increase, the
gesture would be largely symbolic given that very few members
have the capacity to materially increase production," said PVM
analyst Stephen Brennock.
"Either way, OPEC will be wary of rocking the boat given the
current volatile and turbulent state of the oil market."
Ahead of the meeting, OPEC+ trimmed its forecast for an oil
market surplus this year by 200,000 barrels per day (bpd), to
800,000 bpd, three delegates told Reuters.
Meanwhile, data from the American Petroleum Institute, an
industry group, showed U.S. crude stocks rose by about 2.2
million barrels for the week ended July 29.Gasoline inventories
fell by 200,000 barrels and distillate stocks by about 350,000
barrels. [API/S]
Official data from the U.S. Energy Information Administration (EIA)
is due at 1430 GMT. [EIA/S]
(Additional reporting by Sonali Paul and Emily Chow; Editing by
Louise Heavens)
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