Oil prices fell about 2% ahead of OPEC+ supply decision
The OPEC+ alliance is set to convene on Thursday, with expectations that the group will extend production cuts through the first quarter of 2025. While this move could help alleviate near-term oversupply pressures, it also underscores lingering concerns about global demand dynamics.
Global crude oil benchmarks declined by approximately 2% on Wednesday, as trading volumes remained subdued with market participants adopting a cautious stance ahead of the OPEC+ meeting. However, a larger-than-expected drawdown in US crude oil inventories provided some support to prices.
Brent crude decreased by $1.31 or 1.78% to settle at $72.31/barrel.
WTI fell by $1.40 or 2% to close at $68.54/barrel.
The OPEC+ alliance is set to convene on Thursday, with expectations that the group will extend production cuts through the first quarter of 2025. While this move could help alleviate near-term oversupply pressures, it also underscores lingering concerns about global demand dynamics.
In the US, the Energy Information Administration (EIA) reported a significant draw of 5.1 million barrels in crude oil inventories for the week ending November 29, 2024. This reduction, attributed to refineries operating at their highest capacity levels since the summer, helped temper the price decline.
Written by: Muhammad Hafiz