https://sputnikglobe.com/20231128/oil-falls-with-brent-reaching-below-80-per-barrel-mark-amid-opec-uncertainty-1115244361.html
Oil Falls With Brent Reaching Below $80 Per Barrel Mark Amid OPEC+ Uncertainty
Oil Falls With Brent Reaching Below $80 Per Barrel Mark Amid OPEC+ Uncertainty
Sputnik International
The 23-nation OPEC+ is to meet on Thursday after an original round of talks was postponed to November 30 amid disagreement among its ranks, particularly African producers, on whether there should be new production cuts.
2023-11-28T02:19+0000
2023-11-28T02:19+0000
2023-11-28T02:19+0000
economy
opec
oil prices
crude oil
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“Arguably, the OPEC+ meeting will be the week's most impactful event - not just because any decision could have direct consequences for price and therefore inflation but also due to the meeting already being pushed back by four days, so there's clearly some disagreement within the alliance,” Craig Erlam, analyst at online trading platform OANDA, said. UK North Sea-origin Brent settled at $79.98 per barrel, down 60 cents, or 0.7%, on the day. New York-traded West Texas Intermediate (WTI) crude settled below the key $75 mark at $74.86 per barrel, down 68 cents, or 0.9%, on the day. The 23-nation OPEC+ is to meet on Thursday after an original round of talks was postponed to November 30 amid disagreement among its ranks, particularly African producers, on whether there should be new production cuts. Since the middle of this year, Saudi Arabia, which leads the core 13-member OPEC, has teamed up with Russia, which leads nine other independent oil producers to restrict 1.6 million barrels per day of supply from the market. Total OPEC+ cuts are almost at around 4 million barrels per day. The Saudis, who have been shouldering around 1 million barrels of the daily cuts, are expecting a firmer commitment from the rest of OPEC+ to rollover cuts and possibly strengthen them into 2024. “The group has always found a way to get an agreement over the line before, even if that means the biggest producers taking on more of the additional commitments, so it's probably safe to say something similar will be achieved this week,” Erlam said. “But the question is how far they'll push it, given the recent trend in oil prices and increasing concerns around global growth next year.” Global demand for oil has been spotty in recent months, with top importer China still exhibiting signs of economic sluggishness despite multiple stimulus programs. Another problem has been the absence of any impact on Middle East crude supply and traffic from the Israel-Hamas war, despite the conflict’s proximity to some of the largest oil producers. Initially oil prices rose sharply to more than one-year highs after the outbreak of the war on October 7. As of Monday, both Brent and WTI were down about 6% on the year.
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Oil Falls With Brent Reaching Below $80 Per Barrel Mark Amid OPEC+ Uncertainty
NEW YORK (Sputnik) - Crude oil prices fell on Monday, with the Brent benchmark settling beneath the key $80 per barrel level amid concerns on whether global producer alliance OPEC+ would be able to restrict supply meaningfully to a market weakened by demand uncertainty.
“Arguably, the OPEC+ meeting will be the week's most impactful event - not just because any decision could have direct consequences for price and therefore inflation but also due to the meeting already being pushed back by four days, so there's clearly some disagreement within the alliance,” Craig Erlam, analyst at online trading platform OANDA, said.
UK North Sea-origin Brent settled at $79.98 per barrel, down 60 cents, or 0.7%, on the day.
New York-traded West Texas Intermediate (WTI) crude settled below the key $75 mark at $74.86 per barrel, down 68 cents, or 0.9%, on the day.
The 23-nation OPEC+ is to meet on Thursday after an original round of talks was postponed to November 30 amid disagreement among its ranks, particularly African producers, on whether there should be new production cuts.
Since the middle of this year, Saudi Arabia, which leads the core 13-member OPEC, has teamed up with Russia, which leads nine other independent oil producers to restrict 1.6 million barrels per day of supply from the market. Total OPEC+ cuts are almost at around 4 million barrels per day. The Saudis, who have been shouldering around 1 million barrels of the daily cuts, are expecting a firmer commitment from the rest of OPEC+ to rollover cuts and possibly strengthen them into 2024.
“The group has always found a way to get an agreement over the line before, even if that means the biggest producers taking on more of the additional commitments, so it's probably safe to say something similar will be achieved this week,” Erlam said. “But the question is how far they'll push it, given the recent trend in oil prices and increasing concerns around global growth next year.”
Global demand for oil has been spotty in recent months, with top importer China still exhibiting signs of economic sluggishness despite multiple stimulus programs.
Another problem has been the absence of any impact on Middle East crude supply and traffic from the Israel-Hamas war, despite the conflict’s proximity to some of the largest oil producers. Initially oil prices rose sharply to more than one-year highs after the outbreak of the war on October 7. As of Monday, both Brent and WTI were down about 6% on the year.
