Brent crossed $81 a barrel ahead of the OPEC+ meeting

Oil prices rose on Tuesday, supported by the possibility of OPEC+ extending or improving supply cuts as Kazakhstan cut its output due to the storm, pushing steady Brent crude prices above $81 a barrel.

Brent crude futures rose $1.70, or 2.1%, to settle at $81.68 a barrel after settlement. US West Texas Intermediate crude futures were also up $1.55, or 2.1%, at $76.41 a barrel.

OPEC+, comprising the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, will hold an online ministerial meeting on November 30 to discuss production targets for 2024.

Four OPEC+ sources said on Tuesday that talks on oil policy for 2024 were difficult, indicating the possibility of extending the previous agreement, not increasing production cuts.

Thomas Varga of oil brokerage BVM, referring to the OPEC+ meeting, said, “If there are no downside surprises, the recent decline in prices could be seen as a buying opportunity, especially if further cuts are agreed.”

OPEC+ sent oil prices plummeting last week after it postponed its meeting to resolve differences in production targets for African producers.

Oil also received support from a weaker dollar, an expected decline in US crude inventories and a decline in production in Kazakhstan.

The largest oil field in Kazakhstan cut its daily oil production by 56%.

Four analysts polled by Reuters said the latest round of weekly U.S. supply reports would show a decline of about 900,000 barrels in crude inventories.

The dollar fell to its lowest level in three months on Tuesday after Federal Reserve Christopher Waller hinted at the possibility of interest rate cuts in the coming months if inflation eases. A decline in the dollar usually indicates an increase in demand for oil.

(Reuters, Al-Arabi Al-Jadeed)