Crude Oil Prices Increase Ahead of OPEC+ Meeting
The prices of crude oil increased further in the global market ahead of the Organisation of Petroleum Exporting Countries and Allies producers (OPEC+) meeting on Thursday.
The violation of the ceasefire agreement between Israel and Lebanon has further fuel supply risks, while the market anticipated the oil group would extend supply cuts at its meeting.
Brent rose to $73.71 per barrel on Wednesday in the market, while the US benchmark West Texas Intermediate climbed to $69.87 per barrel.
Tension heightened in the Middle East as the Israeli army continued to strike Lebanon despite a cease-fire agreement that came into effect on Nov. 27.
Lebanese Prime Minister Najib Mikati said Tuesday that diplomatic contacts are underway to halt Israeli violations of the cease-fire and ensure Israel’s withdrawal from border towns.
However, Israeli Defense Minister Israel Katz threatened to attack Lebanese state targets if a cease-fire deal with Lebanon collapses.
OPEC+ members’ producers will decide their production policy for the early months of 2025 on Thursday. The oil group is expected to extend its supply cuts until the end of the upcoming first quarter.
The group has been looking to phase out supply cuts through next year gradually. However, the prospect of a market surplus has pressured oil prices.
Meanwhile, the American Petroleum Institute (API) reported late Tuesday that US commercial crude oil inventories increased by 1.23 million barrels, against market expectations of a 2.06 million barrel drop.
The hike in crude reserves reflected market perceptions of weakening domestic demand in the world’s biggest oil consumer, limiting upward price movements.
Official figures from the Energy Information Administration (EIA) are scheduled for later in the day. # Oil Prices Increase Ahead of OPEC+ Meeting FBN Holdings Sheds 8% as Investors Exit Positions
