Discover the Latest Update on Oil Prices by Florence Tan and Colleen Howe
In the world of finance, oil prices remained steady on Tuesday, trading in a narrow range as investors eagerly awaited the outcome of an upcoming OPEC+ meeting.
Crude oil futures saw minimal movement, with Brent crude up 14 cents at $71.97 a barrel and U.S. West Texas Intermediate crude climbing 8 cents to $68.18. Analysts from ANZ noted that market participants are currently in a wait-and-watch mode in anticipation of the OPEC+ meeting.
Sources within the producer group indicated that there may be an extension of output cuts until the end of the first quarter, with discussions set to take place on December 5. OPEC+ members, including OPEC and allies like Russia, have been considering easing production cuts by the beginning of 2025. However, concerns over surplus supply have led to downward pressure on prices.
With expectations of a limited range in oil prices due to subdued demand and a lack of bullish factors, analysts like Priyanka Sachdeva anticipate a downward bias. The outlook for oil remains bleak, especially with projections of China’s oil demand peaking next year.
Furthermore, Saudi Arabia, a major oil exporter, is expected to reduce crude prices for Asian buyers to levels not seen in four years. On the other hand, uncertainties surrounding the Federal Reserve’s decision on interest rates in December have also contributed to the cap on oil prices.
Despite positive signals from China, such as a rise in the purchasing managers’ index, oil prices experienced a decline of over 3% last week on both sides of the Atlantic.
Meanwhile, in the Middle East, tensions between Israel and Hezbollah escalated, leading to casualties in strikes and missile attacks in the region.