Oil prices lose steam on delayed OPEC+ meeting
2023-11-23
Summary:
Oil prices dropped 1% on Thursday, continuing a 1% loss from the previous session. OPEC+ postponed its meeting to November 30 from November 26.
Oil prices fell 1% in early trading on Thursday, extending losses of around 1% from the previous session after OPEC+ decided to delay its meeting to 30 Nov from 26 Nov.
That signalled producers struggled to agree on production levels. Three OPEC+ sources said the disagreement was related to African countries, which are smaller producers in the group.
Analysts predict extended cuts or even additional cuts to support oil prices. Some delegates told Bloomberg that Saudi had expressed dissatisfaction with other member about their output numbers.
Even if the OPEC+ nations extend their cuts into next year, the global oil market will see a slight supply surplus in 2024, the head of the International Energy Agency's oil markets and industry division said.
Elsewhere Venezuela has increased its output to 850,000 bpd and looks to reach 1 million bpd in the near future, according to the country’s deputy oil minister. The US used to be the main destination for Venezuelan exports.
US crude inventories rose by 8.7 million barrels in the week to 17 No, compared with analysts' expectations for a 1.2 million barrels, the EIA said. That marks a straight five-week gain.
The formation of an evening star increases the bearish bias. Brent crude could inch towards it low around $76 until a solid break above the 200 SMA happens to lure bulls back in.
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