West Texas Crude Oil (WTI) contract on the New York market closed slightly positive on Monday (Dec. 11), with market trading conditions being sluggish. This comes amid concerns that crude oil supply may be in oversupply and fuel demand may slow next year.
- The WTI crude oil contract will be delivered in January. rose 9 cents, or 0.1%, to close at $71.32 a barrel.
- The Brent crude oil contract (BRENT) will be delivered in February. It rose 19 cents, or 0.3%, to close at $76.03 a barrel.
Even at the meeting of the Organization of Petroleum Exporting Countries (OPEC) and allied nations or OPEC Plus There was a resolution to reduce production capacity by 2.2 million barrels/day in the first quarter of 2024, but the resolution was in the voluntary nature of member countries. Instead, quotas are set formally. As a result, investors are uncertain whether OPEC+ members will abide by the resolution or not. In addition, the results of the OPEC+ meeting do not help investors to relieve their concerns about oversupply of oil in the market next year.
Analysts from RBC Capital Markets predict that oil prices will remain volatile and directionless. Until the market has a clear picture of the implementation of the meeting resolutions of OPEC+ members.
The market was also pressured by concerns that A slowdown in the Chinese economy may affect oil demand. By last Saturday The National Bureau of Statistics (NBS) of China revealed that China’s Consumer Price Index (CPI) and Producer Price Index (PPI) fell further in November. This indicates more severe deflation.
Investors are keeping an eye on the Federal Reserve’s (Fed) monetary policy meeting on December 12-13 and waiting to see crude oil stock numbers from the US Energy Information Administration (EIA) on Wednesday, December 13. .
By InfoQuest News Agency (12 Dec. 2023)
Tags: oil, WTI oil, oil price
2023-12-12 00:08:41
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