Oil prices experienced a slight rise on Thursday as the market awaited the highly anticipated decision from OPEC+ regarding potential changes to oil production levels. With the added backdrop of geopolitical tensions in the Middle East, investors are closely monitoring the situation for further clues about the direction of oil markets.
By 0103 GMT, Brent crude futures increased by $0.12, reaching $72.43 per barrel, while U.S. crude futures rose by $0.16 to $68.70 per barrel. This modest uptick followed a near 2% decline in both benchmarks on Wednesday, reflecting the market’s volatility ahead of the OPEC+ meeting.
OPEC+ Decision Looms Over the Market
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, are set to meet online later on Thursday. According to insider reports from Reuters, the group is expected to extend its current round of oil production cuts by at least three months, starting in January. This move aims to provide additional support for the oil market amidst fluctuating global demand.
OPEC+ has been gradually phasing out supply cuts but is now weighing its options carefully. Commodity analyst Satoru Yoshida of Rakuten Securities noted, “Market participants are closely watching if OPEC+ will prioritize bolstering prices by extending production cuts or shift focus to defending its share of the global crude oil market by easing those cuts.”