Investing.com – Oil prices fell during Asian trading today. After weak economic signals from major importer China, traders are watching the upcoming OPEC+ meeting. The meeting is widely expected to announce further production cuts.
Crude oil prices are on track for a second straight month of losses in November. It has been affected by fears of a decline in demand for oil due to the global economic recession. Growth is slowing in China, the world’s largest oil importer. It remains a major issue in the crude oil conflict.
But oil prices are still recovering somewhat this week. After five consecutive weeks of losses, this is a result of supply disruptions in Russia and Kazakhstan. Decreased value and opportunities for production cuts by the Organization of the Petroleum Exporting Countries and its allies (OPEC+).
The index scheduled for January fell 0.4% to $82.81 per barrel, while it fell 0.4% to $77.54 per barrel by 8:34 pm EST (01:34 GMT). Both indexes lost between 3% and 5% in November.
China’s PMI is lower than expected raising concerns about demand
China’s PMI figures show further contraction in November while growth in and fell to its lowest levels this year
The data shows that Beijing’s latest stimulus package did little to support business activity. This is especially true as domestic producers see a continuing decline in demand for their products and services abroad.
Signs of continued economic deterioration at home have raised concerns about whether oil demand in China will recover in the coming months, with the country building up significant oil reserves this year. This could reduce demand for crude oil imports in 2024.
Watch OPEC+ reduce production, reports indicate that there will be a reduction of one million barrels per day.
Investors are now watching a report from Reuters today indicating that the alliance is considering further production cuts. To compensate for the recent decline in crude oil prices.
Saudi Arabia and Russia are expected to lead the coalition in further production cuts. This is because the two countries reduced their combined oil production by 5 million barrels per day last year. Media reports indicated on Wednesday that the alliance would reduce production by an additional one million barrels per day.
However, doubts remain about the full extent of the planned production cuts. Especially after reports of conflicts between OPEC+ members, which led to the delay of the November meeting. It was originally scheduled to take place on November 26.
OPEC+ continued to reduce supplies this year to halt the decline in oil prices. But these cuts only supported prices for a moment. Brent and WTI futures are expected to fall between 3.5% and 4% in 2023.
US crude oil inventories continue to rise and also indicate that the market is not as tight as investors had hoped. Official data on Wednesday showed that the United States produced 1.6 million barrels more than expected in the week ending November 24.
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