2023-11-24T04:36:54+00:00
A-
A
A+
/ Brent crude futures rose in early Asian trading, Friday, compensating for losses incurred in the previous session as traders tried to predict whether the OPEC+ alliance would reach an agreement that would lead to further production cuts.
By 0213 GMT, Brent crude futures rose 29 cents, equivalent to 0.4 percent, to $81.71, after falling 0.7 percent at settlement in the previous session.
both crude oil prices are heading to achieve their first weekly rise in five weeks, supported by expectations that the OPEC+ alliance, led by Saudi Arabia, may reduce supplies to balance the markets until 2024.
the coalition, which includes the Institution of the Petroleum exporting Countries (OPEC) and its allies, surprised the market by announcing on Wednesday that it would postpone a ministerial meeting for four days until November 30.
“The most likely outcome now appears to be an extension of the current cuts,” IG market analyst Tony Sycamore wrote in a note.
The sudden postponement initially led to a decline in Brent crude futures contracts by up to four percent, and a decline in American crude oil by up to five percent in trading during Wednesday.
As for demand,analysts said that weak refining margins led to a decline in demand for crude oil from American refineries.
In China, analysts say that oil demand growth may decline to about four percent in the first half of 2024 compared to strong growth levels after the Covid-19 pandemic in 2023, as the country’s real estate sector crisis affects diesel use.
Non-OPEC production growth is expected to remain strong, as Brazilian state energy company Petrobras intends to invest $102 billion over the next five years to increase production to 3.2 million barrels per day of oil equivalent by 2028 from 2.8 million barrels per day in 2024.