Oil Prices Steady Ahead of OPEC+ Meeting

Highlights:

• Oil prices steady ahead of OPEC+ talks: West Texas Intermediate (WTI) crude held below $US69 per barrel, while Brent hovered near $US73, reflecting cautious market sentiment.
• US crude inventories decline: A drop of 1.8 million barrels last week broke a three-week streak of inventory gains, as per Energy Information Administration data.
• OPEC+ meeting anticipated to delay production increases: The upcoming Sunday meeting is expected to address concerns over a potential supply glut in 2025.

Oil markets showed minimal movement as trading volumes thinned ahead of the US Thanksgiving holiday. The focus now shifts to this weekend’s OPEC+ meeting, which is expected to influence production policies.

Brent and WTI Hold Steady

West Texas Intermediate (WTI) crude remained below $US69 per barrel after a marginal decline of 5 cents on Wednesday, while Brent crude hovered near $US73 per barrel. The OPEC+ meeting, scheduled for Sunday, is anticipated to delay production increases amid concerns of a potential supply glut in 2025.

Market Dynamics

Crude prices have been fluctuating within a tight range since mid-October, driven by factors including geopolitical tensions in the Middle East and Russia, and concerns over future oversupply. US trading activity has slowed significantly, with fewer than 500,000 lots of WTI traded—almost 40% below the year-to-date average at the time of writing.

Inventory Data Offers Insight

Adding to the cautious sentiment, US crude oil inventories decreased by 1.8 million barrels last week, according to the Energy Information Administration. This drop snapped a three-week streak of inventory gains, highlighting a shift in supply dynamics.

The oil market remains poised for potential volatility as investors await key outcomes from the upcoming OPEC+ meeting.

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