Oil prices rose slightly on Tuesday on the back of a weaker dollar and expectations that OPEC+ producers’ fears that demand will remain weak will deepen and extend production cuts.
Brent crude futures were up 11 cents, or 0.1%, at $80.09 a barrel at 05:10 GMT. West Texas Intermediate (WTI) crude oil futures rose 4 cents or 0.1% up to $74.90 a barrel.
Both indicators clawed back some of their gains after a sharp rise in early Asian trading.
OPEC+, which brings together the Organization of Petroleum Exporting Countries (OPEC) and its allies, including Russia, will hold an online ministerial meeting on November 30 to discuss 2024 production targets.
The meeting will take place at a time when oil prices have fallen sharply due to concerns about oversupply in the market despite OPEC+’s production cuts. Brent has fallen more than 18% since its late September highs, while WTI has fallen more than 21%. The strong production of non-OPEC countries such as the USA put pressure on prices.
OPEC+ caused oil prices to fall last week when it postponed its meeting to resolve disagreements over production targets for African producers. But sources said Saudi Arabia, the group’s de facto leader, could help reach consensus on the need to deepen production cuts.
According to analysts, the decline in prices could save Riyadh from any pressure from the United States to limit production cuts. Saudi Arabia may be relieved that US gasoline prices have fallen for 60 consecutive days. This could soften U.S. opposition to any moves to tighten oil markets and support prices.
The decline of the US dollar to its lowest level in three months will undoubtedly support demand from countries that pay for oil in other currencies.
