Oil Little Changed in Thin Trading After OPEC+ Delays Meeting

Oil prices remained stable as traders awaited more information regarding OPEC+’s production strategy following a four-day postponement of an important virtual meeting.

Brent crude oil was trading at about $73 per barrel, displaying only a slight increase from the previous day, while West Texas Intermediate hovered near $69. The OPEC+ group now plans to hold a crucial online discussion on December 5 to evaluate the possibility of increasing supplies, a move that could lead to an oversupply in the market. Some delegates have indicated that the talks include considerations to further delay this decision.

The crude oil market has shown a tight trading range since mid-October, alternating between weekly gains and losses. Recently, oil prices have been influenced by changing geopolitical tensions in the Middle East, decreased demand from China—the top global oil importer—and speculations regarding potential policy changes from President-elect Donald Trump that could affect supply chains involving Russia and Iran.

According to Charu Chanana, investment strategist at Saxo Markets Pte in Singapore, "The crude oil market continues to face uncertainties related to weather, demand, and geopolitical events. These factors, coupled with an oversupply in the market, raise concerns about OPEC+ reducing its voluntary production cuts."

Brent futures are projected to incur a weekly decline of nearly 3% due to a cease-fire between Israel and Hezbollah, which has reduced concerns about potential supply disruptions in the region. However, tensions are escalating in Ukraine, with President Vladimir Putin indicating that Russian forces may target key locations in Kyiv with new missile capabilities.

Trading activity was notably lower as a result of the Thanksgiving holiday in the United States, with only around 2.25 million contracts of WTI traded on the New York Mercantile Exchange this week, about half the average weekly volume noted over the past year.

In summary, oil prices reflect a cautious market as it anticipates OPEC+'s upcoming meeting and the decisions that may arise from it.

oil, OPEC, trading