Mumbai, 03 Dec (Commoditiescontrol): Crude oil prices edged lower on Tuesday as traders grappled with mixed market indicators ahead of a crucial OPEC+ meeting later this week.
Brent crude futures dropped by 9 cents, or 0.13%, to settle at $71.74 per barrel, while U.S. West Texas Intermediate (WTI) crude fell 14 cents, or 0.21%, to $67.96 per barrel.
OPEC+, a coalition led by the Organization of the Petroleum Exporting Countries and its allies including Russia, is expected to extend its current production cuts through the first quarter of 2025. The decision, anticipated at the December 5 meeting, comes as the group contends with surplus supply pressures that have kept oil prices subdued. OPEC+ accounts for nearly half of global oil production.
Adding to the bearish sentiment, Saudi Arabia is reportedly preparing to lower crude prices for Asian buyers to a four-year low, reflecting weaker regional demand. Meanwhile, researchers predict that China’s oil demand could peak as early as 2025, potentially widening the gap between supply and demand in the long term.
The broader economic outlook also weighed on prices. In the U.S., the Federal Reserve’s uncertain stance on rate adjustments has kept markets on edge. While Federal Reserve Governor Christopher Waller hinted at supporting a rate cut in December, Atlanta Fed President Raphael Bostic suggested that upcoming employment data could influence policy decisions. These developments offset optimism from China, where a rebound in the purchasing managers' index to a seven-month high offered a glimmer of hope for economic recovery.
Geopolitical tensions in the Middle East further added to market volatility. A fragile ceasefire between Israel and Hezbollah was disrupted by missile exchanges, escalating the conflict in the region and raising concerns over oil supply stability.
Last week, oil prices on both sides of the Atlantic recorded over a 3% decline, reflecting the complex interplay of economic, geopolitical, and supply factors shaping the market. All eyes remain on the OPEC+ meeting, with its decisions likely to steer the next phase of oil price movements.
(By Commoditiescontrol Bureau: 09820130172)
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