Oil prices remained relatively unchanged as trading slowed ahead of the U.S. Thanksgiving holiday, with market attention shifting to the upcoming OPEC+ meeting. Brent crude, the global benchmark, hovered near $73 per barrel, slightly up by 2 cents from the previous session. Meanwhile, West Texas Intermediate (WTI) crude traded below $69.
OPEC+ is anticipated to extend its production cuts during Sunday’s meeting, aiming to counter concerns about a potential oversupply in 2025. Since mid-October, oil prices have been caught in a narrow range, influenced by geopolitical tensions in the Middle East and Ukraine, Donald Trump’s recent presidential election victory, and projections of a future glut.
U.S. trading activity has notably slowed ahead of the holiday, with fewer than 500,000 WTI contracts exchanged on Wednesday—nearly 40% below the year-to-date average.
“Crude may have already baked in a small deferral in OPEC+ tapering its production cuts,” remarked Vandana Hari, founder of Singapore-based Vanda Insights. She noted that any decision to either proceed with production increases on January 1 or indefinitely delay the cuts would catch markets off guard.
In the U.S., crude inventories dropped by 1.8 million barrels last week, ending a three-week streak of stockpile increases, according to the Energy Information Administration.
Market timespreads also reflected strengthening sentiment. Brent’s two nearest contracts exhibited a bullish backwardation, with the front-month contract trading at a 54-cent premium over the next. This marks a notable increase from a 29-cent spread recorded at the start of last week.
As OPEC+ prepares for its critical meeting, traders are closely watching for signals that could reshape the near-term outlook for oil markets.
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