Oil prices fell during trading today on Wednesday, November 22 (2023), amid signs of slowing demand in the world’s largest crude consumer, the United States.
The market is awaiting mixed potential news on the supply front as OPEC+ is expected to discuss deeper production cuts at its next meeting, amid a significant increase in US oil inventories.
At the close of yesterday’s session, oil prices saw volatile trade on Tuesday with Brent crude oil higher and Texas Intermediate crude oil lower.
Oil price today
By 06:47 AM GMT (09:46 AM Mecca time), Brent crude futures for January 2024 delivery were down 0.25% at $82.24 a barrel.
U.S. West Texas Intermediate crude futures for delivery in January 2024 fell 0.24% to $77.58 a barrel, according to data tracked by a specialized energy site.
Two benchmarks (Brent and West Texas Intermediate) fell for 4 consecutive weeks, and oil prices fell further last week on growing concerns about demand expectations.
Analysis Prices Oil
Investors were cautious ahead of an OPEC+ meeting scheduled for next Sunday, as the alliance could discuss deepening supply cuts as global economic growth slows.
Both crude oil benchmarks rose around 2% last Monday (November 20), after news emerged that OPEC+ was considering further cuts in oil supply at their next meeting on November 26.
According to many analysts’ expectations, OPEC+ is likely to extend or even deepen oil supply cuts next year.
“While the market consensus is that Saudi Arabia and Russia will extend voluntary cuts until 2024, further cuts by other members will be key to future prices,” ANZ analysts said. Reuters.
The director of the IEA’s oil markets and industries division believes the global oil market will be slightly oversupplied in 2024, even if OPEC+ countries extend their cuts next year.
U.S. crude inventories rose by about 9.1 million barrels in the week ended Nov. 17, according to figures released by the American Petroleum Institute on Tuesday.
Gasoline stocks fell by about 1.79 million barrels, while distillate stocks fell by about 3.5 million barrels.
The US government is scheduled to release inventory data later on Wednesday.
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