2 months ago
35
December 5, 2024 | 02:34 pm
TEMPO.CO, Jakarta - Oil prices were mostly stable on Thursday ahead of an OPEC+ meeting later in the day, with investors waiting to see what the producer group would do next on supply cuts while also monitoring geopolitical tension in the Middle East.
Brent crude futures rose 6 cents, or 0.08%, to $72.37 a barrel by 0400 GMT, while U.S. crude futures were at $68.61 a barrel, up 7 cents, or 0.10%.
Both benchmarks fell nearly 2% on Wednesday. A single bank sold a large volume of U.S. oil futures contracts in early afternoon trading on Wednesday, a person with direct knowledge of the matter said, pushing prices down.
The Organization of the Petroleum Exporting Countries and its allies in OPEC+ are likely to extend their latest round of oil production cuts by at least three months from January when it meets online at 1100 GMT on Thursday, OPEC+ sources told Reuters, to provide additional support for the oil market.
OPEC+ has been looking to phase out supply cuts through next year.
"Market participants are closely watching to see if OPEC+ will focus on bolstering prices by extending production cuts, or opt to defend its share of the global crude oil market by easing those cuts," said Satoru Yoshida, a commodity analyst with Rakuten Securities.
"The OPEC+ decision may prompt a short-term reaction, but the oil market is likely to rise by year-end on expectations of a U.S. economic recovery under the Trump administration and ongoing Middle East tensions," he said.
For now, the uncertainty kept prices from recovering.
"As the production decision from OPEC+ awaits, there may be some de-risking as some investors price for the scenario that OPEC+ may disappoint," said Yeap Jun Rong, market strategist at IG.
"I think it has become somewhat clear that OPEC+ hands are tied, and with a potential increase in oil production from a Trump Administration coming 2025, their aim to prop up prices may be more challenging," Yeap added.
A larger-than-expected draw in U.S. crude stockpiles last week also provided some support to prices.
U.S. crude stocks fell more than expected last week as refiners ramped up operations, the Energy Information Administration (EIA) said. Gasoline and distillate stockpiles rose by more than expected during the week.
In the Middle East, Lebanon's Hezbollah has been significantly degraded militarily by Israel, but the Iran-backed group will likely try to rebuild its stockpiles and forces and pose a long-term threat to the U.S. and its regional allies, four sources briefed on updated U.S. intelligence told Reuters.
Israel said on Tuesday it would return to war with Hezbollah if their truce collapses and that its attacks would go deeper into Lebanon and target the state itself.
Meanwhile, Donald Trump's Middle East envoy has travelled to Qatar and Israel to kick-start the U.S. president-elect's diplomatic push to help reach a Gaza ceasefire and hostage release deal before he takes office on Jan. 20, a source briefed on the talks told Reuters.
REUTERS
Editor's Choice: Norway Wealth Fund Divests from Israel's Bezeq Over Services to West Bank Settlements
Click here to get the latest news updates from Tempo on Google News
List of 146 Countries That Recognize the State of Palestine
2 hari lalu
The UN has designated November 29 as the International Day of Solidarity with Palestine since 1977. Here is a list of countries that recognize Palestine.
8 Countries with No Income Tax, List of Tax-Free Places
9 hari lalu
Some countries in the world operate with no income tax since they have strong revenue sources. Discover countries with no income tax here.
World Faces Oil Surplus in 2025 as Chinese Demand Underperforms
19 hari lalu
The world faces an oil surplus in 2025, partly due to the declining demand from China.
CPO Price Increase Forecast Through Next Year
25 hari lalu
The price of crude palm oil (CPO), is expected to continue rising through next year.
President Prabowo's First Foreign Visit to 5 Countries
26 hari lalu
Prabowo also plans to visit several countries in the Middle East during his first foreign visit.
Prabowo Spills Plan to Visit Middle Eastern Countries in First Foreign Tour
27 hari lalu
Prabowo will visit China, the United States, Peru, Brazil, and the United Kingdom during his working visit.
Arab Countries' Response to Israeli Attacks on Iran; From Saudi Arabia to Qatar
38 hari lalu
Israel launched an attack on military sites in Iran on Saturday morning, October 26. How did Arab countries respond to the attack?
Bank Indonesia Forecasts 4.7-5.5% Economic Growth for Indonesia in 2024
48 hari lalu
Bank Indonesia (BI) Governor Perry Warjiyo has projected that Indonesia's economy will grow between 4.7 and 5.5 percent throughout 2024.
Airlines Suspend Flights as Middle East Tensions Rise
50 hari lalu
Concerns over a wider conflict in the Middle East have prompted international airlines to suspend flights to the region or to avoid affected air space
Indonesia's Jokowi Condemns Israel's Attack on Peacekeeping Troops in Lebanon
50 hari lalu
Indonesian President Joko "Jokowi" Widodo has condemned Israel's recent attack on several areas in the Middle East.
