Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

Oil prices settle higher after supply disruptions; OPEC+ meeting eyed

Published Nov 29, 2023 02:10 Updated Nov 29, 2023 20:52
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
LCO
+1.89%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CL
+1.98%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Investing.com-- Oil prices rose sharply Wednesday, shrugging off unexpected increase in U.S crude stockpiles amid further supply disruptions just a day ahead of an OPEC+ meeting to decide on future output policy.

By 14:30 ET (19:30 GMT), the U.S. crude futures settled 1.9% higher at $77.86 a barrel and the Brent contract climbed 1.7% to $83.10 a barrel.

U.S. weekly stockpiles spring upside surprise

U.S. weekly crude stockpiles rose by roughly 1.6M barrels in the week ended Nov. 14, confounding expectations of a draw of about 933,000 barrels. 

Gasoline inventories, one of the products that crude is refined into, rose by roughly 1.8M barrels, well above expectations of a build of 229,000 barrels while distillate stockpiles jumped by 5.2M barrels, compared with expectations for a fall of 394,000 barrels.

Supply disruptions help crude prices

A severe storm in the Black Sea region has reportedly disrupted up to 2 million barrels per day of oil exports from the region, as it resulted in Kazakhstan’s three biggest oil fields cutting output by 56%.

Additionally, the oil market also found support from a drop in U.S. crude inventories, with stocks falling by 817,000 barrels last week, according to data from industry body American Petroleum Institute.

Official data is scheduled for release later in the session, and if this draw is confirmed it comes after a bumper, 8.7 million build in the week before. U.S. inventories had seen four straight weeks of builds as fuel demand appeared to be cooling with the winter season.

Output cuts in focus ahead of OPEC+ meeting looms large

Hopes of potential output cuts by major oil producers were boosted  ahead of the Organization of the Petroleum Exporting Countries and allies, including Russia, meeting due Thursday, were boosted by a Wall Street Journal report Wednesday, suggesting that a cut of as much as 1 million barrels a day was under consideration.     

Saudi Arabia, Russia and other members of OPEC+ have already pledged total oil output cuts of about 5 million barrels per day (bpd), about 5% of daily global demand, in a series of steps that started in late 2022.

This includes Saudi Arabia's additional voluntary production cut of 1 million bpd, which is due to expire at the end of December, and a Russian export cut of 300,000 bpd until the end of the year.

(Peter Nurse and Ambar Warrick contributed to this report)

Oil prices settle higher after supply disruptions; OPEC+ meeting eyed
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email