2023-11-30 08:34:00
© Archyde.com. Oil pumps working in a field in the city of Meppen in northern Germany, in a photo from the Archyde.com archive.
SINGAPORE (Archyde.com) – There was little change in oil prices on Thursday as investors continued to remain cautious ahead of expected production cuts from the OPEC+ alliance, while Chinese factory data showed slowing growth in the world’s second-largest economy.
By 0740 GMT, crude futures increased 13 cents, or 0.2 percent, to 83.23 per barrel, while US West Texas Intermediate crude futures rose 17 cents, or 0.2 percent, to $78.03 per barrel.
The contracts for the two standard crude oils recorded an increase of approximately two percent the previous day amid hopes that the OPEC+ group, which includes the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, will reach a decision that supports prices in some way.
OPEC+ members are scheduled to hold a policy meeting on Thursday. Three sources told Archyde.com that OPEC+ ministers will hold meetings on Thursday to discuss an additional cut in oil production next year in order to support the market.
The size of the additional reduction has not yet been determined, but two sources said it ranges between one million and two million barrels per day.
“The countdown to the next OPEC+ meeting is now underway, and this has been the main focus for oil prices,” said Yip Jun Rong, a market strategist at IG.
An official survey on Thursday showed China’s manufacturing activity contracted for the second straight month in November and at a faster-than-expected pace, indicating the need for more policy support measures to help drive economic growth in the world’s largest oil importer.
The US Energy Information Administration on Wednesday also announced a surprise increase in distillate inventories last week, indicating weak demand. The data showed that gasoline stocks also rose more than expected.
“The market ignored what was a relatively bearish inventory report from the Energy Information Administration,” ING analysts said, adding that all eyes were on the OPEC+ meeting.
“Adding to the uncertainty surrounding the meeting is that it is not yet clear whether the group is able to resolve the disagreement over Angola and Nigeria’s production targets for next year,” analysts said.
Officials told Archyde.com that the two OPEC+ member countries, Angola and Nigeria, are seeking to increase oil production.
(Prepared by Noha Zakaria and Duaa Muhammad for the Arabic Bulletin)
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