2023-11-28 22:56:19
Brent price exceeds $81 per barrel before the OPEC+ meeting
Oil prices rose today, Tuesday, supported by the possibility of OPEC+ extending or enhancing supply cuts, with Kazakhstan reducing its production due to a storm, which led to the price of standard Brent crude rising above the level of $81 per barrel.
Brent crude futures rose $1.70, or 2.1%, to reach $81.68 per barrel upon settlement. US West Texas Intermediate crude futures also rose $1.55, or 2.1%, to $76.41 per barrel.
OPEC+, which includes the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, will hold an online ministerial meeting on November 30 to discuss production targets for 2024.
Four OPEC+ sources said on Tuesday that talks on oil policy for 2024 are difficult, which suggests the possibility of extending the previous agreement, not increasing production cuts.
Tamas Varga, of oil brokerage BVM, said in reference to the OPEC+ meeting: “Unless there is any negative surprise, the recent decline in prices is likely to be viewed as a buying opportunity, especially if A further reduction was agreed upon.”
OPEC+ caused a decline in oil prices last week, as a result of postponing its meeting in order to settle differences over production targets for African producers.
Oil also received support from the weakness of the dollar, the expected decline in US crude inventories, and also the decline in Kazakhstan’s production.
The largest oil field in Kazakhstan reduced its daily oil production by 56%.
Four analysts polled by Archyde.com said that the latest round of weekly US supply reports would show a decline in crude inventories by regarding 900,000 barrels.
The dollar fell to its lowest level in three months, today, Tuesday, following Christopher Waller of the Federal Reserve (the US central bank) indicated the possibility of lowering the interest rate in the coming months if inflation declines. The decline of the dollar usually represents an opportunity to increase demand for buying oil.
(Archyde.com, Al-Arabi Al-Jadeed)
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