Oil futures contracts closed slightly lower this Wednesday (27) with the prospect of a reduction in tensions in the Middle East reducing premiums for geopolitical price risk. On the other hand, the movement occurred with the dollar devalued compared to its peers, which makes the commodity more attractive for holders of other currencies.
In addition, investors noted the prospects for the meeting of the Organization of Petroleum Exporting Countries and allies (OPEC+) next Sunday, 1, and the release of data in the United States.
On the New York Mercantile Exchange (Nymex), WTI oil for January closes down 0.07% (US$ 0.05), at US$ 68.72 per barrel, while Brent for February, traded on the Intercontinental Exchange ( ICE), February closes down 0.03% (US$ 0.02), at US$ 72.30 per barrel.
White House National Security Advisor Jake Sullivan said United States President Joe Biden intends to begin a new effort to achieve a possible ceasefire in Gaza this Wednesday.
According to him, the agreement announced yesterday between Israel and Hezbollah required “intense” persistence from American diplomacy, but represented good progress for conflicts in the Middle East. Hamas published a statement saying that the group “appreciates” Lebanon’s right to reach a ceasefire that protects the population and said it hopes for an agreement to end the war in Gaza.
As for OPEC+, the group had a plan to begin reducing 2.2 million barrels per day (b/d) of voluntary cuts. This development has already been postponed several times. Citi expects OPEC+ to delay the rollback of production cuts by a quarter to April 2025.
Without a major supply disruption, the bank’s base case scenario continues to be that OPEC+ extends production cuts until 2025, but global inventories still rise, with the forecast remaining at the Brent average of US$60 in 2025. Saudi Arabia , Russia and Kazakhstan today emphasized full adherence to the OPEC+ agreement, including voluntary cuts, as well as compensation for any excess production.
Oil stocks in the United States fell by 1.844 million barrels, to 428.448 million barrels in the week ending November 22, the country’s Department of Energy (DoE) reported today.
Analysts consulted by The Wall Street Journal predicted a smaller drop of 500,000 barrels. The number of active oil wells and platforms in the US fell by two in the week, to 477, according to information from Baker Hughes, a company that provides services to the sector.
