Brent moves higher as oil market awaits OPEC’s next move
The front-month ICE Brent contract has traded $0.30/bbl higher on the day, to trade at $72.83/bbl at 09.00 GMT.
PHOTO: Oil barrels. Getty Images
Upward pressure:
Brent futures gained momentum as the market shifted focus from geopolitical risk premiums to OPEC’s next move, after the oil consortium postponed its ministerial meeting to 5 December.
The Saudi Arabia-led oil producers’ group will discuss its plan to phase out its voluntary production cut of 2.2 million b/d at its upcoming virtual meeting. However, market analysts expect the group members to maintain production cuts through January 2025 to support prices.
“Crude oil prices were steady as the market contemplates the next move by OPEC,” ANZ Bank’s senior commodity strategist Daniel Hynes said.
Downward pressure:
Peace talks in Lebanon, mediated by the US and France, have eased supply disruption concerns in the oil market and put some downward pressure on Brent’s price.
A ceasefire deal between Israel and Iran-aligned Hezbollah armed group was achieved earlier this week. Israel’s war cabinet approved the agreement, effective Wednesday morning across the Lebanon-Israel border.
“A ceasefire agreement between Israel and Hezbollah giving us a ray of hope that maybe we can find a way out of the vicious cycle of war that has plagued the world over the last four years,” Price Futures Groups’ senior market analyst Phil Flynn remarked.
By Aparupa Mazumder
Please get in touch with comments or additional info to news@engine.online
