Crude oil contracts rallied more than 2% on Tuesday (Nov. 28) in response to mounting expectations that the Organization of the Petroleum Exporting Countries (OPEC) and allied nations, collectively known as OPEC+, will implement further oil production cuts at their impending meeting. Alongside this sentiment, the market drew strength from the dollar’s decline and reports indicating a reduction in Kazakhstan’s oil production due to severe weather conditions.
WTI crude futures surged by $1.55, marking a 2.07% increase, closing at $76.41 per barrel. Simultaneously, BRENT crude futures climbed by $1.70, reflecting a 2.13% rise to conclude at $81.68 per barrel.
OPEC+ is scheduled to convene online on Thursday, Nov. 30, to outline oil production policies for 2024. Reports suggest that Saudi Arabia has brokered an agreement with OPEC+ members to implement additional oil production cuts during the meeting.
The market found further support from news highlighting a substantial decrease in daily oil production across three major oilfields in Kazakhstan, collectively slashing output by 56%. This decline was attributed to the adverse impact of storms hitting the Black Sea region.
The weakening dollar also contributed significantly to the oil market’s positive trajectory. As crude oil contracts are priced in dollars, the depreciation of the dollar renders these contracts more appealing to investors holding other currencies.
In addition to these factors, the American Petroleum Institute (API) reported a reduction of 817,000 barrels in U.S. crude oil stocks last week. Market focus now shifts to the imminent release of official crude oil stock figures from the US Energy Information Administration (EIA), scheduled for 10:30 p.m. Thai time today.
Investor attention remains fixated on the outcome of the OPEC+ meeting and the impending government data release, influencing trading strategies and shaping market expectations concerning future oil production and stock levels.
The Spot Market is Open
Wednesday, November 29, 2023
| Energy Updated at | USD Price | Change | %Change |
| Crude Oil 07.45 | 76.72 | +0.31 | +0.41% |