Oil Prices Remain Stable in Asian Trade Amidst Potential OPEC+ Cuts
Supply Concerns Offset Gains
Oil prices showed little movement in Asian trade on Wednesday, with concerns over a potential build-up of crude inventories offsetting gains triggered by anticipated supply cuts from the OPEC+ producers group.
Modest Increases in Futures
Brent crude futures rose by 0.1% to $82.56 a barrel, while U.S. West Texas Intermediate crude futures saw a 0.2% increase to $77.91. Both benchmarks have experienced four consecutive weeks of decline, prompting caution among investors ahead of the scheduled OPEC+ meeting on Sunday.
Anticipation of OPEC+ Meeting
Investors are closely monitoring the upcoming OPEC+ meeting, with hopes that the producer group will consider deepening supply cuts in response to slowing global economic growth.
Potential for Extended Cuts
On Monday, both contracts experienced a 2% surge following reports that the OPEC+ group may discuss additional oil supply cuts at the November 26 meeting. Analysts have predicted that OPEC+ is likely to extend or deepen oil supply cuts into the following year.
Global Oil Market Outlook
Despite potential supply cuts, the head of the International Energy Agency’s (IEA) oil markets and industry division cautioned that the global oil market may still experience a slight supply surplus in 2024.
U.S. Crude Stockpile Data
Market sources revealed that U.S. crude stocks rose by nearly 9.1 million barrels in the week ended November 17. Gasoline inventories declined by about 1.79 million barrels, while distillate inventories fell by approximately 3.5 million barrels. U.S. government data on stockpiles is set to be released on Wednesday.
By Laura Sanicola
