Oil prices rose slightly in Asian trade on Monday with focus remaining squarely on an upcoming OPEC+ meeting this week. While anticipation of a string of key economic readings also kept traders on edge.
OPEC+ Meeting Delay Sparks Uncertainty in Asian Oil Trade
For the fifth week in a row, crude prices fell as expectations of additional supply reduces by the Organisation of OPEC+ were largely dashed by the meeting’s postponement from November 26 to November 30. Differences over output levels were reported to be the reason for the postponement, making this particularly true
Brent oil futures expiring January rose 0.2% to $80.75 a barrel. While West Texas Intermediate crude futures expiring January rose 0.2% to $75.67 a barrel by 20:24 ET (01:24 GMT). Over the last week, both contracts saw a slight decrease in close.
Saudi Arabia and Russia Expected to Maintain Oil Supply Reductions
It is generally anticipat that two of the OPEC+’s leading producers. Saudi Arabia or Russia, will continue to reduce their supply. These two spearheaded the OPEC+’s supply reduction efforts this year as concerns over rising interest rates and deteriorating economic conditions undermining the world’s oil demand grew.
However, observers have noted a recent rise in output in other OPEC+ countries. Additionally, according to Shree Metal Prices reports, some African countries intended to clash with Saudi Arabia’s plans. The de-facto leader of OPEC+, and rise output at the upcoming meeting.
This year’s oil markets didn’t seem as tight as first believed, thanks to rising output by some OPEC+ members, record-high U.S. output, and expanding Chinese inventories.
More output cuts from Russia or Saudi Arabia are anticipate as a result of the trend. Which analysts predict will result in a shortage of supply until 2024
Prior to a series of significant economic data releases this week. Beginning with the euro zone inflation report on Thursday, oil markets were likewise cautious. As the 3rd quarter saw the bloc enter a technical recession, worries about the declining demand for crude oil increased.
The world’s largest oil importer, China, is expect to provide additional insights into business activity with the release of its purchasing managers index (PMI) statistics on Thursday.
Chinese oil demand may slow down as a result of the country’s largely stagnant economic activity and rising oil stocks in recent months.
This week, there will also be a second reading of the third-quarter U.S. gross domestic product (GDP) statistics and a reading of PCE prices, the Federal Reserve’s
favourite inflation metre. It is anticipate that both readings will demonstrate the US economy’s ongoing resilience.
However, since travel is restrict during the winter, U.S. oil demand is expect to decline in the upcoming months.