Crude oil holds a decline as Opec+ dispute clouds production outlook

Oil held a decline after the Opec+ alliance was forced to delay a critical meeting amid a dispute over output quotas, casting a pall of uncertainty over the group’s production policy for next year.
 

Global benchmark Brent was steady above $81 a barrel after dropping 1.3 per cent over the previous two sessions, while US counterpart West Texas Intermediate was below $77 a barrel following the US Thanksgiving break.
 

Saudi Arabia, the de facto leader of Opec, and its allies are embroiled in a dispute over output quotas for African members. The meeting initially planned for this weekend has been pushed back to Nov. 30, and it’ll be an online session instead of in-person.

 

Crude is on course for a back-to-back monthly loss, with prices down about 16 per cent from a high in late September. The drop has been driven by signs of increased supplies from non-Opec+ countries, rising US stockpiles, and the fading of the premium generated by the Israel-Hamas war. Meanwhile, the International Energy Agency sees the market tipping back into surplus next year.
 

“The oil price will probably tread water for the most part ahead of the meeting,” Commerzbank AG analysts including Barbara Lambrecht wrote in a note. 

“The kingdom still appears willing to shoulder the lion’s share of the supply cut needed to stabilize the oil market.”