Saturday, April 1, 2023

Oil prices slip in cautious trading ahead of OPEC+ meeting By Reuters


© Reuters. FILE PHOTO: The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County

By Florence Tan

SINGAPORE (Reuters) – Oil prices fell about 1% on Monday amid investor jitters ahead of an OPEC+ meeting to decide whether the producers’ group will extend large output cuts to balance global markets.

January futures, which will expire later on Monday, dropped 58 cents, or 1.2%, to $47.60 a barrel by 0008 GMT. The more actively traded February Brent contract was at $47.77 a barrel, down 48 cents.

U.S. West Texas Intermediate crude futures for January fell 40 cents, or 0.9%, to $45.13 a barrel.

Both benchmarks are still set to rise more than 20% in November, the strongest monthly gains since May, boosted by hopes that three promising coronavirus vaccines that may curb the rapid spread of the disease and in doing so support fuel demand.

Analysts and traders also expect the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia – the OPEC+ grouping – to delay next year’s planned increase in oil output as a second COVID-19 wave has cut into global demand for fuel.

OPEC+ previously agreed to raise output by 2 million barrels per day (bpd) in January – about 2% of global consumption – after record supply cuts this year.

The group held an initial round of talks on Sunday, but has yet to find a consensus on oil output policy for 2021 ahead of crucial meetings on Monday and Tuesday, four OPEC+ sources told Reuters.

Monday’s meeting will commence at 1300 GMT.

“Signs of disunity in OPEC raised the prospect of the group not agreeing to an extension of current production cuts,” ANZ analysts said.

“Some members, including UAE and Iraq, have expressed misgivings about its policy over supply.”

The bank estimated that the oil market surplus could be as high as 1.5 million to 3 million bpd in first half of 2021 if OPEC+ does not extend cuts.

Meanwhile, the number of operating oil and rigs in the United States has risen for the fourth month in a row as producers return to the wellpad with crude prices mostly trading over $40 a barrel since mid June.

China is also due to release manufacturing data on Monday which will likely show economic expansion in the world’s second-largest economy and top oil importer.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link


Please enter your comment!
Please enter your name here



Related Stories