Oil Down As Opec Meeting Looms

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Oil Down As Opec Meeting Looms

Oil Down By 0.6% As OPEC+ Meeting Looms

Both of the oil futures are down on Tuesday as the long-awaited OPEC+ meeting is just around the corner. In fact, oil futures have already erased most of their gains from the past few days and are in red now.

It looks like the market participants have adopted a more cautious approach as they await the outcome of the upcoming OPEC+ meeting. All the members of the OPEC+ are expected to discuss the already announced supply cuts along with any new ones as well.

Oil Supply Cuts To Extend Into 2024

Since the global growth is not as fast as it was initially anticipated, there's a good chance that the supply cuts will be further extended to support the oil prices.

As a result, Brent Crude Futures has shed $0.51 and is down by 0.6%. Similarly, the WTI crude futures have also lost $0.51 of its value (around -0.7% change). When checked last time, the trading price for Brent futures was $81.81, while the WTI futures were trading near $77.32.

On Monday, both of these oil contracts gained +2% after the rumors that OPEC+ members will consider about next supply cuts on 26th November. However, the upside was limited as most of these gains were reversed during Tuesday's session.

In theory, further supply cuts from the OPEC+ members will be bullish for the oil prices as well as the future oil contracts.

According to one expert, the OPEC+ meeting will likely lead to more supply cuts during the year 2024 as well. So, if we take that forecast into consideration, it means the oil prices will experience more upside in the next few months.

When compared with the oil prices from September, a drop of 16% is recorded, which signifies that oil demand remains weak despite the deep supply cuts. At the same time, the market is worried about the growth prospects of China, which is also the top oil importer in the world.

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