Oil dips as US stocks rise; prospect of OPEC action supports

LONDON, Oct 23 (Reuters): Oil prices declined on Wednesday, holding below $60 a barrel on data showing a bigger-than-expected rise in US crude stocks, but the prospect of deeper output cuts by OPEC and its allies offered support.

Brent crude futures LCOc1 were down 25 cents, or 0.43 per cent, to $59.45 a barrel at 0834 GMT.

West Texas Intermediate (WTI) crude futures CLc1 for December delivery fell 32 cents, or 0.59 per cent, to $54.16 per barrel. The November contract expired on Tuesday at $54.16.

US crude stocks rose by 4.5 million barrels to 437 million barrels in the week ended Oct. 18, compared with analysts' expectations for a gain of 2.2 million barrels, data from industry group the American Petroleum Institute showed.

Inventory data from the US Energy Information Administration (EIA) is due later on Wednesday.

Helping underpin prices, the Organisation of the Petroleum Exporting Countries (OPEC) is mulling whether to deepen production cuts amid concerns of weak demand growth next year. Some analysts were sceptical of OPEC's ability to further cut output.

"It will be a struggle to get members to cut a significant amount more, particularly if you have some members who are not pulling their weight when it comes to cuts," Dutch bank ING said in a note.

OPEC and other oil producers including Russia, a group known as OPEC+, have pledged to cut production by 1.2 million barrels per day (bpd) until March 2020. OPEC and other non-members are scheduled to meet again Dec. 5-6.