OPEC+ Meeting Delay Causes Oil to Decline in Volatile Trading

OPEC+ Meeting Delay Causes Oil to Decline in Volatile Trading

SummaryCompaniesOPEC+ meeting delayed to Nov. 30US ​crude​ inventories rose last ⁢week – EIANEW YORK, Nov 22 (Reuters) – Oil prices fell nearly 1% in⁤ a volatile session⁤ on Wednesday​ as OPEC+ producers unexpectedly delayed ⁢a meeting on production ‌cuts, raising questions about global crude supplies.Brent futures settled 49 cents lower to ​$81.96 a barrel, after falling more than 4% to ⁣a low of $78.41‌ earlier in the session. U.S. West Texas Intermediate crude settled 67 cents lower at $77.10, after declining more than 5% to a session low of $73.79 earlier⁢ in the day.OPEC+ postponed the meeting, originally scheduled for Nov. 26, to ⁤Nov.30, it said in a‍ statement, a surprise development that drove prices sharply lower in early trading. The group ‌was expected to discuss whether to expand oil output cuts.Prices bounced back after ⁣news that the disagreement was related to African ⁢countries, which are among the smaller producers in the group, rather than the top⁢ oil exporters.Some traders also pointed to low liquidity‍ ahead of the U.S. Thanksgiving‍ holiday.The OPEC+ meeting, which includes major producers​ Saudi Arabia, ⁣Russia and other allies and members‍ of the Organization of the ⁤Petroleum Exporting Countries, had ⁣been expected to consider further changes to a deal that already limits supply into 2024, ​according to analysts ‌and ​OPEC+ sources.The delay stoked concerns that more ⁢production ⁤could come online from oil producers in the coming months, ​said Dennis Kissler, senior vice president of trading at ⁢BOK Financial.A rise in‌ inventories also pressured prices lower⁣ on Wednesday morning, he ‍said.U.S. crude oil inventories rose by 8.7 million barrels last ‍week on higher ⁢imports, the Energy Information ‍Administration (EIA) said.The U.S. dollar (.DXY) bounced ​back from a 2-1/2-month low after economic data showed lower unemployment claims. A⁤ rise in the ​greenback ‍makes ⁤dollar-denominated oil more ​expensive for buyers in other currencies.Both crude benchmarks have fallen for four straight weeks.To support prices, OPEC and its allies will need to not ⁣only extend, but increase cuts, said John Evans of oil ‍broker PVM in a note.Earlier this week, an OPEC technical panel invited a top financial market ‌dealer ⁢to give a presentation, seen by ​Reuters, which painted a⁣ bearish outlook for the oil market.Even if the OPEC+ nations​ extend their cuts into next year, the global oil ⁣market will see a slight supply surplus in 2024, the head of the International Energy Agency’s oil markets⁣ and industry division said on Tuesday.Reporting by Nicole Jao, Paul Carsten, Ahmad Ghaddar, Laura Sanicola and Colleen Howe; editing by ‌Jason Neely, Marguerita Choy, David Gregorio and Deepa ⁤BabingtonOur Standards: The Thomson ‌Reuters Trust Principles. Acquire Licensing Rights, opens new tab

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