Oil is expected to end its losing run in anticipation of additional OPEC+ cuts

28 Nov 2023 , 09:49 AM

 Tuesday’s increase in oil prices ended a string of losses that had lasted several sessions. This meeting of OPEC+ is anticipated to tighten and extend production restrictions, as there are concerns that supply will continue to exceed demand.

In an attempt to end a four-day losing run, Brent oil futures were up 45 cents, or 0.6%, at $80.43 per barrel. After declining for three straight sessions, U.S. West Texas Intermediate (WTI) oil futures were trading 43 cents higher, or 0.6%, at $75.28 a barrel.

On November 30, an online ministerial conference will be held by OPEC+, an alliance comprising Russia and the Organisation of the Petroleum Exporting Countries (OPEC), to deliberate on production objectives for 2024.

On November 30, an online ministerial conference will be held by OPEC+, an alliance comprising Russia and the Organisation of the Petroleum Exporting Countries (OPEC), to deliberate on production objectives for 2024.

According to four OPEC+ sources who spoke to Reuters on Friday, the group has made progress towards a compromise after moving last week to postpone the meeting in order to resolve differences over production targets for African producers, which sent oil prices plunging. This could potentially help de facto leader Saudi Arabia get closer to an agreement on deepening its oil production cuts.

According to analysts, strong output from non-OPEC nations like the US has increased pricing pressure.

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