Oil Prices Drop 1% Amid OPEC+ Meeting Delay
Oil Prices Fall in Early Trading
Oil prices fell 1% in early trading on Thursday, extending losses from the previous session. This comes after OPEC+ postponed a ministerial meeting, sparking concerns that producers might not cut output as much as previously expected.
Global Impact on Futures
Global futures fell 81 cents, or 1%, to $81.15 a barrel, following a 4% decline on Wednesday. U.S. West Texas Intermediate crude also dipped 72 cents, or 0.9%, to $76.40, after falling as much as 5% in the previous session.
Thanksgiving Holiday Affects Trade
Trade was expected to remain muted due to the Thanksgiving holiday in the United States.
OPEC+ Meeting Postponed
In a surprise move, the Organization of the Petroleum Exporting Countries and allies, including Russia, delayed a ministerial meeting where they were expected to discuss oil output cuts.
Struggle to Agree on Output Levels
Producers were struggling to agree on output levels and possible reductions ahead of the meeting originally set for November 26, according to OPEC+ sources.
Link to African Countries
Three OPEC+ sources stated that the postponement was linked to African countries, smaller producers in the group, easing investor concerns.
Impact of OPEC+ Supply Questions
Questions over OPEC+ supply arise as data shows stocks jumped by 8.7 million barrels last week, much higher than the 1.16-million build that analysts had expected.
U.S. Oil Rigs Unchanged
U.S. oil rigs remained unchanged at 500 in the week to November 22, as reported by energy services firm Baker Hughes.
Underwater Pipeline Leak
Approximately 3% of crude oil production in the Gulf of Mexico, or around 61,165 barrels of daily output, was shut in by an underwater pipeline leak, according to the U.S. Coast Guard.
