By Siyi Liu
In today’s financial market update, oil prices dipped as U.S. gasoline inventories unexpectedly rose, leading investors to focus on the upcoming OPEC+ meeting to discuss oil output policies. Brent futures slipped 0.2% to $72.69 per barrel, while U.S. WTI crude futures also fell by 0.2% to $68.58 per barrel.
Market analysts anticipate light trading due to the U.S. Thanksgiving holiday, with concerns over the bearish momentum in oil prices as risks of supply disruptions in the Middle East diminish. The increase in U.S. gasoline stocks by 3.3 million barrels has countered expectations for a draw, signaling a potential impact on holiday travel.
Slowing fuel demand in key markets like the U.S. and China has weighed on oil prices, despite efforts by OPEC+ to curtail supply. The producer group is set to meet on Sunday to discuss a possible delay in the planned oil output hike scheduled for January.
While a further deferment may already be priced into oil markets, the duration of the delay remains uncertain. Geopolitical factors, such as the ceasefire between Israel and Lebanon’s Hezbollah group, have also influenced oil prices this week.
Experts from Goldman Sachs and Morgan Stanley have warned of undervalued oil prices due to a market deficit, with potential risks to Iranian supply under the upcoming U.S. administration. Overall, the oil market outlook remains uncertain as geopolitical tensions continue to impact supply and demand dynamics.