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Oil Prices Likely to Recover in Runup to OPEC Meeting

Oil prices mixed on Thursday, as markets are focused on OPEC meeting amid diminished U.S. reserves. OPEC and its allies, including Russia became closer to agreeing deeper oil supplies cuts, meeting on Thursday and Friday in Vienna, sources said to Reuters.

oil prices likely to recoverPhoto: Pixabay

The further scenario of OPEC-led oil supply cut fate will be discussed, as the agreement expires in the end of March 2020. Recall, the current OPEC agreement, signed since 2017, presupposed crude production reduction by 1.2 million barrels per day.

Increased production in the U.S. and other non-OPEC countries, such as Norway and Brazil next year threatens to burden the market.

Brent crude benchmark grew by 0.25 percent, at $63.14 per barrel, whereas U.S. WTI light oil slipped by 0.12 percent, to $58.36 per barrel at 9.53 GMT.

Meantime, fresh EIA Petroleum Report showed on Wednesday, that U.S. crude inventories declined by 4.856 million barrels in the week, which ended on November 29th 2019, after a 1.572 million jump in the prior week falling short of analysts expectations of a 1.734 million drop, according to EIA Petroleum Status Report.