Oil Prices Rise Slightly Amid OPEC+ Meeting and Economic Data Anticipation
Oil Prices in Asian Trade
Oil prices saw a slight rise in Asian trade on Monday as all eyes remain on the upcoming OPEC+ meeting and anticipation of key economic readings, keeping traders on edge.
Crude Prices and OPEC+
Crude prices declined for the fifth consecutive week, with hopes of more supply cuts by OPEC+ being offset by a delay in the meeting. Reports suggested the delay was caused by disagreements over production levels.
Oil Price Movement
Prices for crude oil expiring in January rose 0.2% to $80.75 a barrel, while Brent crude expiring in January rose 0.2% to $75.67 a barrel by 20:24 ET (01:24 GMT). Both contracts closed marginally lower in the past week.
OPEC+ Production Cuts
Saudi Arabia and Russia, leading producers in the OPEC+, are expected to extend or deepen their ongoing supply reductions. However, production in other OPEC+ members has been seen increasing in recent months, which could impact overall supply levels.
Market Trends and Economic Readings
Increased production by some OPEC+ members, record-high U.S. production, and growing Chinese stockpiles have made oil markets appear less tight than initially thought this year. This trend could draw more production cuts from Saudi Arabia and Russia.
Inflation and Business Activity Readings
Oil markets are also cautious before a string of major economic readings this week. The Eurozone slipped into a technical recession in the third quarter, raising concerns over slowing crude demand. Chinese economic data is set to offer more cues on business activity, while a second reading on U.S. GDP for the third quarter and a reading on PCE inflation gauge are expected to show continued resilience in the U.S. economy.
U.S. oil demand is set to cool in the coming months as the winter season restricts travel.
