Oil prices mixed ahead of OPEC+ meeting

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Investors were cautious ahead of next Sunday’s OPEC+ meeting as global economic growth slows and further supply cuts may be considered.

Brent crude rose 13 cents to $82.45 a barrel, while U.S. West Texas Intermediate (WTI) crude futures fell 6 cents to $77.77 a barrel.

The group of producers comprising OPEC and its allies will consider options for further oil supply cuts at a Nov. 26 meeting, three sources in the OPEC+ coalition told Reuters.

Eight analysts expect the OPEC+ alliance to extend or even increase oil production cuts next year.

Helima Croft, an analyst at RBC Capital, said, “We see some opportunities for the group to make some significant production cuts, but we expect other members to increase production to share the burden of adjustment.”

The head of the International Energy Agency’s oil markets and sector told Reuters on Tuesday that the global oil market will still be slightly oversupplied in 2024, even if OPEC+ countries extend production cuts into next year.

Oil prices mixed ahead of OPEC+ meeting

Speaking on the sidelines of a conference in Oslo, Toril Busoni said the oil market was currently suffering from shortages and inventories were falling “rapidly”.

A preliminary survey by Reuters on Monday showed U.S. crude oil and gasoline inventories may have risen last week, while distillate stocks fell. The American Petroleum Institute is scheduled to release its weekly report on Tuesday night and the Energy Information Administration is scheduled to release its weekly report on Wednesday.

The oil market has fallen about 16 percent since the end of September as production in the U.S., the world’s biggest producer, hit record highs while the market worries about growing demand, especially from China, its biggest importer.

Traders are also watching for signs of slowing demand, as the U.S. is likely to fall into recession by 2024.

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