WTI oil closes at $1.71, accepting OPEC+ production cut forecasts: InfoQuest

Editor’s Picks, Economic News6:52 a.m.2023-11-21

West Texas crude oil (WTI) contracts in New York closed up more than 2% on Monday (Nov. 20), supported by expectations that Organization of the Petroleum Exporting Countries (OPEC) and allied nations or OPEC Plus Further production cuts will be made at next week’s meeting.

• The WTI crude oil contract will be delivered in December. Rose $1.71 or 2.3% to close at $77.60/barrel.
• As for the Brent crude oil contract (BRENT), delivered in January. Rose $1.71 or 2.1% to close at $82.32/barrel.

Reuters news agency reported, citing a source from OPEC, that The OPEC+ meeting on Nov. 26 will consider further production cuts. After OPEC+ previously agreed to reduce production by a total of 3.66 million barrels/day until the end of 2024.

The news helped boost oil prices to rebound. WTI and Brent crude oil prices both fell more than 1% last week, marking four straight weeks of declines, largely pressured by concerns about market demand. including the view that the war between Israel and Hamas will not spread outside the region.

Amrita Sen, an analyst at Energy Aspects, forecast that Saudi Arabia, the world’s No. 1 oil producer, will extend its voluntary oil output cuts until the first quarter of 2024, or may even reduce them. Continuing until the first half of next year.

Investors will be keeping an eye on today’s release of American Petroleum Institute (API) crude oil stocks and official crude stock figures from the U.S. Energy Information Administration (EIA) on Wednesday.

By InfoQuest News Agency (21 Nov. ’23)

Tags: WTI, WTI oil, oil price