Oil Prices Retreat Ahead of OPEC+ Meeting Amid Global Economic Concerns

Oil Prices Retreat Ahead of OPEC+ Meeting Amid Global Economic Concerns

VoM News Desk | November 22, 2023 | 06:48 AM IST | Energy | Follow on Google News

Oil Prices Retreat Ahead of OPEC+ Meeting Amid Global Economic Concerns

Oil Prices Retreat Ahead of OPEC+ Meeting Amid Global Economic Concerns

Oil prices saw a downturn on Tuesday, November 21, as investors adopted a cautious stance ahead of the upcoming meeting of the Organisation of Petroleum Exporting Countries and its allies (OPEC+). This meeting, scheduled for Sunday, may address potential supply cuts in response to global economic slowdown.

After gaining approximately 2% on Monday, Brent crude futures dropped by 55 cents (0.7%) to $81.77 a barrel. Similarly, US West Texas Intermediate crude futures fell by 54 cents (0.7%) to $77.29.

Domestic Market Trends

In India, the Multi Commodity Exchange (MCX) saw November futures for crude oil trading lower by 1.12% at ₹6,470 per barrel. The session experienced fluctuations between ₹6,420 and ₹6,500 per barrel, compared to the previous close of ₹6,543 per barrel.

Factors Influencing Crude Oil Prices

• Upcoming US data on crude and product stockpiles could provide new insights into market fundamentals.
• A decrease in international crude oil prices could aid in controlling India’s inflationary pressures. India’s retail inflation dropped to a four-month low in October.
• The average price of India’s crude oil basket in November is lower than in October, which may contribute to easing inflation.
• The IEA head Fatih Birol expressed concerns about the Middle East crisis and its potential impact on global oil supplies.
• The ongoing conflict in Gaza between Israel and Hamas has not significantly affected oil prices yet, but involvement of oil-producing countries in the region could change this.

Future Outlook and Analyst Predictions

Analysts speculate that Saudi Arabia and Russia might extend their voluntary output cuts to stabilize oil prices. The weakening dollar index and improved investor risk appetite have also influenced crude oil prices. US equity markets reaching multi-week highs and China’s decision to maintain its prime loan rates are additional factors supporting crude prices.

Price Projections

Market experts predict volatility in crude oil prices, identifying support levels at $77.10–76.50 and resistance at $78.50-79.20 for the current trading session. In terms of the Indian Rupee, crude oil has support at ₹6,450-6,370 and resistance at ₹6,632-6,600.

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