{"id":8833,"date":"2023-11-24T12:07:01","date_gmt":"2023-11-24T12:07:01","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=8833"},"modified":"2023-11-24T12:07:01","modified_gmt":"2023-11-24T12:07:01","slug":"brent-steady-ahead-of-opec-oil-production-decision","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/8833\/","title":{"rendered":"Brent steady ahead of OPEC+ oil production decision"},"content":{"rendered":"

RoydadNaft – <\/a><\/span>\u00a0Brent crude futures were steady on Friday as traders kept their powder dry ahead of an OPEC+ meeting that could bring agreement on further supply cuts.<\/p>\n

Brent crude futures were down 8 cents, or 0.1%, at $81.34 a barrel by 0913 GMT, having settled 0.7% down in the previous session.<\/p>\n

U.S. West Texas Intermediate crude lost 70 cents, or 0.91%, from Wednesday’s close to $76.40. There was no settlement for WTI on Thursday owing to a U.S. public holiday.<\/p>\n

Both contracts were on track to register for their first weekly gain in five weeks, supported by some hope that the Saudi-led OPEC+ producer group could reduce supply to balance the market into 2024.<\/p>\n

The Organization of the Petroleum Exporting Countries (OPEC) and allies, together known as OPEC+, surprised the market with an announcement on Wednesday that it would postpone a ministerial meeting by four days to Nov. 30 after producers struggled to reach a consensus on production levels.<\/p>\n

“The most outcome now appears to be an extension of existing cuts,” IG analyst Tony Sycamore wrote in a note.<\/p>\n

The surprise delay had initially brought Brent futures down as much as 4% and WTI by as much as 5% in Wednesday’s intraday trading.<\/p>\n

Trading remained subdued because of the Thanksgiving holiday in the United States.<\/p>\n

The near-term economic outlook in China, meanwhile, supported market sentiment.<\/p>\n

Recent Chinese data and fresh aid to the indebted property sector can be “positive for the oil market’s near-term trend”, said CMC Markets analyst Tina Teng.<\/p>\n

Yet those gains could be capped by higher U.S. crude stockpiles and poor refining margins, leading to weaker demand from U.S. refineries, analysts said.<\/p>\n

“Fundamentals developments have been bearish with rising U.S. oil inventories,” ANZ analysts said in a note.<\/p>\n

China’s longer-term outlook is lukewarm, however. Analysts say oil demand growth could weaken to about 4% in the first half of 2024 as the property sector crunch weighs on diesel use.<\/p>\n

Non-OPEC production growth is set to remain strong, with Brazilian state energy company Petrobras planning to invest $102 billion over the next five years to boost output to 3.2 million barrels of oil equivalent per day (boepd) by 2028, up from 2.8 million boepd in 2024.<\/p>\n

Updated on