OPEC+ summit anticipation affects oil prices ahead of Thursday meeting

Oil prices have continued to slide as the market anticipates the upcoming OPEC+ meeting scheduled for Thursday. The assembly, which was initially set for the previous Sunday, was postponed due to disagreements among member countries over production targets. Despite a significant reduction in output by OPEC+ nations, has dipped below $80 per barrel.

Ahead of the rescheduled summit, the oil market has seen a mix of developments. The U.S Energy Information Administration reported an unexpected increase in domestic oil inventories, while U.S production remained at a peak rate. These factors, combined with the OPEC+ output cutbacks, have led to cautious trading sentiment.

In recent trading sessions following Thanksgiving, NYMEX WTI futures fell, with refined products like RBOB and ULSD also seeing price drops. However, by Monday, RBOB futures had seen a slight increase, despite cash prices nearing year-lows in some U.S. markets.

The market is closely watching the OPEC+ meeting, where discussions are expected to center on extending production cuts into the next quarter. The adherence to quotas by cartel members will be under scrutiny. Diesel markets have shown mixed reactions due to varying weather forecasts in Europe and the U.S., causing fluctuations in futures prices.

In anticipation of the holiday season, gasoline demand is projected to rise, potentially offsetting the current downward trend. January futures for both WTI and Brent have seen slight declines as traders await the outcomes from the crucial OPEC+ meeting later this week.

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