Oil Prices Slip as Investors Await OPEC+ Meeting
Oil prices slipped on Monday as investors awaited the OPEC+ meeting later this week for an agreement to curb supplies into 2024. Brent crude futures fell 37 cents, or 0.5%, to $80.21 a barrel by 0231 GMT, while U.S. West Texas Intermediate crude futures were at $75.18 a barrel, down 36 cents, or 0.5%.
OPEC+ Moves Closer to Compromise on Production Targets
OPEC+ is moving closer to a compromise on production targets, four OPEC+ sources told Reuters on Friday. The group had postponed a ministerial meeting to Nov. 30 to iron out differences on production targets for African producers.
ING Analysts Expect Saudi Arabia to Roll Over Voluntary Supply Cut
ING analysts expect Saudi Arabia to roll over its additional voluntary cut of 1 million barrels per day into next year. The analysts said that if Saudi Arabia does not roll over the cut, it would put further downward pressure on the market.
Goldman Sachs Analysts Expect Extension of Unilateral Saudi and Russia Cuts
Goldman Sachs analysts expect an extension of the unilateral Saudi and Russia cuts through at least 2024Q1. The analysts also expect unchanged group cuts, although a deeper group insurance cut is likely on the table.
UAE Set to Ramp Up Exports of Murban Crude Early Next Year
The United Arab Emirates is set to ramp up exports of flagship Murban crude early next year as a new OPEC+ mandate kicks in and barrels are diverted to the international market owing to refinery maintenance.
IEA Forecasts Slight Surplus in Global Oil Markets in 2024
The International Energy Agency said it expects a slight surplus in global oil markets in 2024 even if the OPEC+ nations extend their cuts into next year.
Commonwealth Bank Analyst Expects OPEC+ to Show Supply Discipline
Commonwealth Bank analyst Vivek Dhar said that with the IEA forecasting that global oil demand will only grow 0.9 million bpd next year, down from 2.4 million bpd growth in 2023, OPEC+ will have to show significant supply discipline, or at least jawbone such ability, to alleviate market worries of a deep surplus in oil markets next year.
Oil Prices Stabilize After Geopolitical Tensions Dial Down
Oil prices have also stabilized after geopolitical tensions dialled down in the Middle East following a ceasefire in Gaza and an exchange of hostages and prisoners.
