Crude oil prices stayed steady on November 28, after an unexpected jump in US gasoline stock supplies and delaying of the OPEC + meeting on output policy, which was moved from December 1 to December 5. Today Brent Crude futures moved up by 8 cents to $72.91 per barrel. While US West Texas intermediate (WTI) crude futures were up by 7 cents at $68.79.
OPEC+ a group of oil producing economies and allies including Russia, has postponed its meeting over the weekend to avoid a conflict with other events. A further deferment has mostly been factored in to oil prices already, said Suvro Sarkar at DBS Bank.
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OPEC+ produces about half of the world’s oil, but it has kept production cuts in place to help keep prices stable due to weak global demand. As a result, the group has delayed reducing these cuts several times. OPEC+ sources have said that on December 5, they will discuss whether to further delay planned oil output increases set for January.
On Wednesday, the U.S. Energy Information Administration reported that fuel stocks didn’t drop as expected before the holiday travel season. Slower fuel demand in China and the U.S. has put pressure on oil prices this year. Brent and WTI prices have fallen more than 3% this week.
A ceasefire deal between Israel and Hezbollah, which began on Wednesday, has also added pressure on prices by easing worries about oil supply disruptions from the Middle East.
(With Reuters inputs)
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