2023-11-21 21:17:00
© Archyde.com. An oil pump in Texas, United States, in a photo from Archyde.com archive.
NEW YORK (Archyde.com) – Oil prices were mixed at settlement on Tuesday, with investors cautious ahead of the OPEC+ meeting next Sunday, which may consider further supply cuts due to slowing global economic growth.
Brent crude futures rose at settlement by 13 cents to 82.45 per barrel, while US West Texas Intermediate crude futures fell six cents to $77.77.
There is only one session left before the US Thanksgiving holiday on Thursday, which usually results in lower trading volumes in oil.
The two benchmarks rose regarding 2 percent on Monday following three sources in the OPEC+ alliance told Archyde.com that the producer group, consisting of OPEC and its allies, will consider the option of making additional cuts in oil supplies when it meets on November 26.
Eight locals expected that the OPEC+ alliance would extend or perhaps increase oil supply cuts next year.
“We see some scope for the group to make a deeper cut, but we expect it will seek additional barrels from other members to share the burden of the adjustment,” said Helima Croft, an analyst at RBC Capital.
The head of the Oil Markets and Sector Department at the International Energy Agency told Archyde.com on Tuesday that even if OPEC+ countries extend their cuts until next year, the global oil market will see a slight surplus in supply in 2024.
Toril Busoni said on the sidelines of a conference in Oslo that the oil market is currently suffering from a deficit, with inventories declining at a “rapid rate.”
A preliminary poll conducted by Archyde.com on Monday showed that US crude and gasoline inventories likely rose last week, while distillate inventories declined. A weekly report from the American Petroleum Institute is scheduled for release later Tuesday and from the Energy Information Administration on Wednesday.
The oil market has declined by approximately 16 percent since late September, as production in the United States, the world’s largest producer, remained at record levels, while the market was concerned regarding the growth in demand, especially from China, the number one importer of oil.
Traders are also watching for signs of declining demand due to a possible US recession in 2024.
(Prepared by Mahmoud Reda Murad and Muhammad Ali Faraj for the Arab Bulletin – Edited by Ali Khafaji)
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