Oil gets cheaper due to uncertainty about OPEC+ meeting outcome

Oil quotes go down at Tuesday morning trades. Brent oil fell by 0.63% to 47 USD 58 cents per barrel. The cost of WTI oil fell by 0.71% to 45 USD 2 cents per barrel.

Investors are waiting for the results of the OPEC+ deal. The meeting started on Monday. However, no decision was made at the end of the day.

Today the discussion of the terms of the agreement was to continue. But it became known that the meeting, previously scheduled for December 1, was postponed to December 3 due to the need for additional consultations.

Experts note that there is no unanimity among the parties to the transaction regarding the possible extension of the existing restrictions on the volume of oil production. And the fact that the second day of the meeting was postponed to a later date can be considered a good sign. This means that an agreement can still be reached. It is important to the oil market.

At present, the market situation looks ambiguous. While the demand for raw materials in Europe and the United States remains weak, it is growing in Asian countries.

One Response

  1. The last time OPEC+ reduced supply on such a scale was in 2008 when it took 4.2 million barrels per day off the market to support oil prices in the wake of the financial crisis.

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