Oil Price Decline Sparks Market Tensions Ahead of OPEC+ Meeting

Oil prices have fallen for the fourth consecutive session, solidifying a sense of uncertainty in global markets, coinciding with traders’ focus on the delayed meeting of the “OPEC+” alliance, which is crucial in determining oil production quotas. Amid investors’ aversion to risk, the global Brent crude price witnessed a drop below $80 per barrel, while West Texas Intermediate (WTI) reached around $75 per barrel.

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The details

The details

Oil prices were affected by increased supplies from non-OPEC+ countries, along with the disappearance of risk premiums due to regional tensions. In a related context, the International Energy Agency expressed expectations of the market returning to supply surplus next year.

Fawwaz Dar, an analyst at the Commonwealth Bank of Australia, added, “The alliance will work to avoid division, and OPEC+ countries, in particular, will need to demonstrate discipline in production to alleviate concerns of a significant surplus in oil markets next year.”

In another development

an attack on a chemical tanker linked to Israel in the regional waters between Yemen
and Somalia revealed its impact on the oil market.
This comes in the context of a series of attacks on vessels associated with Israel,
amid escalating tensions in the region.

In the Middle East, the United Arab Emirates hosts the United Nations Climate Change Conference (COP 28),
with Sultan Al Jaber, the head of the government-owned oil company in the UAE, leading the summit,
sparking debates about the role of the oil industry in transitioning towards sustainability in the region.

Oil Price Decline Sparks Market Tensions Ahead of OPEC+ Meeting

Oil Price Decline Sparks Market Tensions Ahead of OPEC+ Meeting

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