Oil prices exhibited minimal movement in Asian trade on Wednesday as the market anticipated news on the supply front, including potential OPEC+ discussions on output cuts and the release of U.S. crude stocks data indicating a substantial build-up. As of 0500 GMT, Brent crude futures experienced a marginal decline of 3 cents, equivalent to 0.04%, settling at $82.45 per barrel. Concurrently, U.S. West Texas Intermediate crude futures saw a modest drop of 1 cent, or 0.01%, reaching $77.76.
Both benchmark crude prices have sustained a four-week decline, with last week witnessing additional weakening amid mounting concerns about the global demand outlook. Investor caution prevails in anticipation of the OPEC+ meeting scheduled for Sunday, during which the producer group is expected to deliberate on the possibility of implementing further supply cuts in response to sluggish global economic growth.
Earlier in the week, Brent and WTI crude prices saw a modest increase of about 2%, prompted by reports from three OPEC+ sources indicating that the group, comprising the Organization of the Petroleum Exporting Countries (OPEC) and allied producers, is contemplating additional oil supply cuts at its meeting on November 26. Analysts have predicted that OPEC+ is likely to extend or potentially deepen oil supply cuts into the next year.
ANZ analysts underscored the significance of the meeting outcomes, stating, “While market consensus suggests Saudi Arabia and Russia will be extending voluntary cuts into 2024, any further cuts by other members will hold the key to future prices.”
