Oil was little changed as trading thinned before the US Thanksgiving holiday, with the focus on an upcoming OPEC+ meeting that has been delayed until December 5.
Author of the article:
Bloomberg News
Yongchang Chin
Published Nov 27, 2024 • Last updated 6 days ago • 1 minute read
Oil drill pipes in Baku, Azerbaijan. Photographer: Andrey Rudakov/Bloomberg Photo by Andrey Rudakov /Bloomberg (Bloomberg) — Oil was little changed as trading thinned before the US Thanksgiving holiday, with the focus on an upcoming OPEC+ meeting that has been delayed until December 5.
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Global benchmark Brent was near $73 a barrel after ending just 2 cents higher on Wednesday, with West Texas Intermediate below $69. OPEC+ is widely expected to once again delay restoring production when it next meets, to offset concerns about an anticipated glut next year.
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The meeting, originally scheduled for Sunday, has been pushed back by four days, according to delegates who asked not to be identified. The group had earlier in the week started talks on delaying an increase to supply.
Oil has been caught in a tight range since mid-October, with prices buffeted by geopolitical risks in the Middle East and Ukraine, Donald Trump’s presidential election victory and expectations of a glut in 2025. US trading has quietened before the holiday, with just over 500,000 lots of WTI changing hands on Wednesday — almost 40% less than the year-to-date average.
“Crude may have already baked in a small deferral in OPEC+ tapering” its production cuts, said Vandana Hari, founder of Vanda Insights in Singapore. “A decision to proceed with the boost from Jan. 1 or something as drastic as an indefinite postponement” would be a surprise for markets, she added.
Meanwhile, US crude inventories fell by 1.8 million barrels last week, snapping a three-week run of gains, according to Energy Information Administration data.
Widely watched timespreads have also strengthened. The gap between Brent’s two nearest contracts was 54 cents a barrel in a bullish backwardation pattern, when the prompt contract trades at a premium over the following one. The difference was 29 cents at the beginning of last week.
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