Oil Prices Steady Amid OPEC+ Meeting Delay

Oil prices remained steady as traders awaited further information regarding OPEC+’s production strategies following the delay of a crucial virtual meeting by four days.

Brent crude was hovering around $73 per barrel after experiencing a slight increase on Thursday, while West Texas Intermediate (WTI) was close to $69. The OPEC+ group is now set to assess whether to begin increasing supplies, which could risk a surplus in the market, during their online meeting scheduled for December 5. Delegates previously indicated discussions had started on postponing any supply adjustments.

The crude oil market has seen prices remain within a narrow range since mid-October, oscillating between weekly gains and losses. Prices have been influenced by various factors, including shifting geopolitical tensions in the Middle East, declining demand from major importer China, and uncertainty surrounding President-elect Donald Trump’s impending policies that may impact supplies from Russia and Iran.

Market analysts like Charu Chanana, chief investment strategist at Saxo Markets Pte in Singapore, noted that "the crude oil market continues to face uncertainties" stemming from weather conditions, demand fluctuations, and geopolitical situations. These issues, coupled with an oversupplied market, raise questions about OPEC+'s plans to reverse its voluntary production cuts.

Brent futures are on track for a near 3% weekly loss after a cease-fire between Israel and Iran-backed Hezbollah alleviated fears over potential supply disruptions from the region. However, tensions are escalating in Ukraine, as President Vladimir Putin has indicated that Russian forces may target key decision-making centers in Kyiv using advanced ballistic missiles.

Trading volumes have been subdued, partially due to the Thanksgiving holiday in the United States on Thursday, with just over 2.25 million WTI contracts exchanging hands so far this week on the New York Mercantile Exchange, which is about half the average weekly volume seen over the past year.

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