Oil rises, Brent tops $80 ahead of OPEC+ meeting. As a result of predictions that the OPEC+ producer group may tighten and prolong output cutbacks owing to worry over lower global demand, oil prices increased on Tuesday, with the Brent benchmark reaching above $80 per barrel. The Brent benchmark jumped above $80, which supported this.
OPEC+, which is a coalition of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, will convene a ministerial meeting online on Thursday to discuss production goals for the year 2024.
As of 09:21 GMT, a barrel of Brent oil futures has increased by 72 cents, or 0.9%, to $80.70. At $75.55, West Texas Intermediate (WTI) crude futures in the United States increased by 69 cents, or 0.9%.
According to Tamas Varga, an oil dealer at PVM, “the recent drop in prices will probably be viewed as a buying opportunity, especially if further cuts are agreed upon,” he said about the OPEC+ meeting. “Barring any negative surprises,” he said.
OPEC+, comprised of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, decided to postpone a ministerial meeting until November 30 to resolve disagreements on output targets for African producers. This decision caused the market to see a significant decline.
According to four sources inside OPEC+ who spoke to Reuters on Friday, the group has subsequently moved toward a compromise. This may assist Saudi Arabia, the de facto head of the group, in reaching an agreement over the necessity of further reducing output. Saudi Arabia may find solace in the fact that the price of gasoline in the United States has decreased for sixty consecutive days. This may make the United States less resistant to any action that would tighten oil markets and boost prices, according to ANZ Research’s note on Tuesday.
A weak dollar, which makes oil cheaper for holders of foreign currencies and tends to represent a higher risk appetite among investors, was another factor that helped oil prices. Additionally, the assumption that crude oil stocks in the United States decreased last week was another factor that helped oil prices. According to the average estimations of four analysts surveyed by Reuters, the most recent round of weekly supply data from the United States will reveal that oil stockpiles have decreased by around 2 million barrels.
The American Petroleum Institute, which is an industry body, has released the first of the two reports that will be released this week at 21:30 GMT.
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