Latest News

Oil edges lower on caution ahead of OPEC+ meeting

0

Oil edges lower on caution ahead of OPEC+ meeting By Reuters

Breaking News

‘;

Commodities

Published Nov 21, 2023 01:29
Updated Nov 21, 2023 22:36

© Reuters. FILE PHOTO: An aerial view shows tugboats helping a crude oil tanker to berth at an oil terminal, off Waidiao Island in Zhoushan, Zhejiang province, China July 18, 2022. cnsphoto via REUTERS/File Photo

By Stephanie Kelly

NEW YORK (Reuters) – Oil prices ended near flat on Tuesday after rallying for two sessions, with investors cautious ahead of Sunday’s scheduled OPEC+ meeting, when the producer group may discuss deepening supply cuts due to slowing global economic growth.

Brent crude futures settled 13 cents higher at $82.45 a barrel. U.S. West Texas Intermediate crude futures eased 6 cents lower at $77.77.

Prices pared losses late, with one more session before the U.S. Thanksgiving holiday on Thursday, which typically yields lower trading volumes in oil.

“Going into the long weekend the market would rather be a little bit long than short,” said Andrew Lipow, president of Lipow Oil Associates.

On Monday, both contracts climbed about 2% after three OPEC+ sources told Reuters the group, the Organization of the Petroleum Exporting Countries (OPEC) and allied producers, was set to consider additional oil supply cuts when it meets on Nov. 26.

OPEC+ is likely to extend or even deepen oil supply cuts into next year, eight analysts have predicted.

“We see some scope for the group to do a deeper reduction, but we would anticipate that Saudi Arabia would seek additional barrels from other members to share the burden of the adjustment,” said RBC Capital analyst Helima Croft.

Even if the OPEC+ nations extend their cuts into next year, the global oil market will see a slight supply surplus in 2024, the head of the International Energy Agency’s (IEA) oil markets and industry division said on Tuesday.

Currently though, the oil market is in a deficit with stocks declining “at a fast rate”, Toril Bosoni said on the sidelines of a conference in Oslo.

U.S. crude stocks rose by nearly 9.1 million barrels in the week ended Nov. 17, according to market sources citing American Petroleum Institute figures on Tuesday. [EIA/S] [API/S]

Gasoline inventories dropped by about 1.79 million barrels, while distillate inventories fell by about 3.5 million barrels.

U.S. government data on stockpiles was due on Wednesday.

Oil has fallen about 16% since late September as crude output in the U.S., the world’s top producer, held at record highs, while the market was concerned about demand growth and a potential economic slowdown.

Market participants kept an eye on a development in the Gulf of Mexico, as U.S. officials said seven energy companies have been impacted by an oil discharge near Main Pass Oil Gathering Co’s (MPOG) pipeline system that is estimated to have released more than a million gallons of crude oil.

Oil edges lower on caution ahead of OPEC+ meeting

Our Apps



Terms And Conditions
Privacy Policy
Risk Warning
Do not sell my personal information

© 2007-2023 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

The Moneyist: What happens to credit-card debt after you die? Will my mother’s IRA be used to pay off her personal loans? 

Previous article

Crypto: Binance boss pleads guilty, steps down, but crypto bulls still see promise in another black eye for the industry

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News