Crude oil rose overnight (November 29), mainly due to speculative buying. While investors keep an eye on the OPEC+ meeting and the report on U.S. crude oil inventories this week.
WTI crude futures were up $1.80, or 2.6%, at $69.95 a barrel.
BRENT crude futures were up 72 cents, or 1%, at $73.44 a barrel.
Speculators took advantage of the panic selling on Friday to grab cheap entry positions. On Friday, oil prices had fallen 13%, the biggest drop since the start of the pandemic in April 2020. Concerns about the new COVID variant Omicron discovered in South Africa triggered panic selling.
Investors are also monitoring the EIA report on U.S. crude oil inventories, which will be released tomorrow. A suspension of production in January 2022 is expected from OPEC+ at its oil production policy meeting on December 2. The move is intended to address falling demand resulting from the impact of Omicron and the actions taken by the United States and its allies to draw down strategic crude oil stocks.
The Spot Market is Open
Tuesday, November 30, 2021