Tuesday, February 27, 2024

Oil prices mixed amid caution ahead of OPEC+ meeting Reuters

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© Reuters. An oil pump in Texas, US, in a photo from the Reuters archive.

NEW YORK (Reuters) – Oil prices were mixed on Tuesday’s settlement, with investors cautious ahead of next Sunday’s OPEC+ meeting, which could consider further supply cuts as global economic growth slows.

Brent crude was up 13 cents at $82.45 a barrel, while US West Texas Intermediate crude futures were down six cents at $77.77.

Thursday has just one session before the US Thanksgiving holiday, which usually results in lower levels in oil trading.

The two benchmarks rose around 2 percent on Monday, three sources in the OPEC+ alliance told Reuters that the producer group, made up of OPEC and its allies, will consider the option of further cuts in oil supply when they meet on November 26.

Eight locals expected the OPEC+ alliance to extend next year or increase oil supply cuts.

“We see some opportunities for the group to make deep cuts, but we expect additional barrels from other members to share the burden of adjustment,” said Helima Croft, analyst at RBC Capital.

The head of the International Energy Agency’s oil markets and sector department told Reuters on Tuesday that even if OPEC+ countries extend their cuts until next year, the global oil market will see a slight surplus in supply in 2024.

Torril Busoni said on the sidelines of the conference in Oslo that the oil market was currently suffering from shortages and inventories were declining at a “rapid rate”.

A preliminary Reuters poll on Monday showed U.S. crude and gasoline inventories may have risen last week, while distillate inventories fell. A weekly report from the American Petroleum Institute is scheduled for late Tuesday and from the Energy Information Administration on Wednesday.

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The oil market has fallen about 16 percent since late September as production in the United States, the world’s biggest producer, hit record levels, while the market worried about growing demand, particularly from China, the top importer. Oil.

Traders are also watching for signs of a slowdown in demand, with a possible US recession in 2024.

(Prepared by Mahmoud Reda Murad and Muhammad Ali Faraj for Arabic Bulletin – edited by Ali Khafaji)

Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

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