OPEC Speculated to Slash Oil Prices

In Asian trade on Nov 22, oil prices remained largely unchanged as a potentially large buildup of US crude offset gains triggered by likely supply cuts from the OPEC+ producers group. Brent crude futures were up 11 cents, or 0.1%, to $82.56 per barrel by 0004 GMT. West Texas Intermediate crude futures in the United States rose 14 cents, or 0.2%, to $77.91.

Both benchmarks have fallen for four straight weeks, and investors remained cautious ahead of Sunday's scheduled OPEC+ meeting, when the producer group may discuss deepening supply cuts due to slowing global economic growth. On Nov 20, both contracts climbed about 2 per cent after three OPEC+ sources told Reuters the group, the Organization of the Petroleum Exporting Countries (OPEC) and allied producers, was set to consider additional oil supply cuts when it meets on Nov. 26.

Analysts predict that OPEC+ will extend or even deepen its oil supply cuts into next year. Even if OPEC+ countries extend their cuts into next year, the global oil market will have a slight supply surplus in 2024, according to the head of the International Energy Agency's (IEA) oil markets and industry division.

According to market sources citing American Petroleum Institute figures on Nov 21, crude stocks in the United States increased by nearly 9.1 million barrels in the week ended Nov. 17. Petrol inventories decreased by approximately 1.79 million barrels, while distillate inventories decreased by approximately 3.5 million barrels. The US government's stockpile data is due on November 22.