Oil prices trade in tight range ahead of OPEC+ meeting
Shafaq News/ Oil prices were little changed on Tuesday, trading within anarrow range, as traders awaited the outcome of an OPEC+ meeting later thisweek.
Brent crude futures were up 14 cents, or 0.19%, at $71.97 a barrel by0404 GMT, after a 1-cent drop in the previous session. U.S. West TexasIntermediate crude climbed 8 cents, or 0.12%, to $68.18, following a 10-centgain at Monday's close.
"Investors are in wait-and-watch mode ahead of the OPEC+meeting," ANZ analysts said in a note.
Sources from the producer group said it will extend its latest round ofoutput cuts until the end of the first quarter at its Dec. 5 meeting.
OPEC+, which includes the Organization of the Petroleum ExportingCountries and allies such as Russia, has been looking to unwind production cutsby the first quarter of 2025. However, the outlook for surplus supply has putpressure on prices. The group accounts for about half of the world's oilproduction.
"I think there's no other option but to defer it," PriyankaSachdeva, a senior market analyst at Phillip Nova said, adding that it may befor just a month or so as there is a lot of pressure from participating nationsto ramp up output.
Amid a lack of bullish catalysts and lacklustre demand, Sachdeva expectsoil prices to trade in a limited range with a bias towards the downside.
Consumption outlook remains weak with China's oil demand expected topeak as soon as next year, researchers and analysts said, further exacerbatingthe gap between demand and supply.
Saudi Arabia, the world's top exporter, is expected to cut crude pricesfor Asian buyers to the lowest level in at least four years, traders said.
Concerns that the U.S. Federal Reserve may not cut rates at its Decembermeeting have also capped oil prices, offsetting positive signals from China,where the purchasing managers' index rose to a seven-month high in November.
Oil prices on both sides of the Atlantic fell more than 3% last week.
Federal Reserve Governor Christopher Waller, whose views are often abellwether for U.S. monetary policy, said he was inclined to support anotherrate cut this month, but Atlanta Federal Reserve President Raphael Bosticmaintained that the Fed still needed to consider upcoming jobs data.
In the Middle East, holes continued to appear in a U.S.-brokeredceasefire between Israel and militant group Hezbollah, with nine people killedin strikes on two southern Lebanese towns shortly after Hezbollah firedmissiles on an Israeli military position in the disputed Shebaa Farms area onMonday.
(Reuters)
