Oil prices fell Thursday after a surprise rise in US gasoline stocks, with investors focused on this weekend’s OPEC+ meeting.
Brent crude futures fell 14 cents, or 0.2%, to $72.69 a barrel by 0401 GMT, while WTI crude futures also fell 14 cents, or 0.2%, to $68.58 a barrel.
Trading is expected to be light as Thursday’s US Thanksgiving holiday begins.
Oil is likely to maintain its near-term downward momentum as risks of supply disruptions in the Middle East ease and higher-than-expected US gasoline stocks.
The U.S. Energy Information Administration (EIA) said Wednesday that U.S. gasoline inventories rose by 3.3 million barrels in the week ended Nov. 22, meeting expectations for a decline in fuel stocks ahead of record holiday travel.
Slowing fuel demand growth in the largest consumers, the U.S. and China, has weighed on oil prices this year, but OPEC+’s supply restrictions have limited losses.
OPEC+ meets on Sunday. Members are discussing further delays to an oil production increase scheduled to begin in January. As many in the market expect, further delays have already been reflected in oil prices.
The only question is whether it will be a one-month, three-month or longer pullback. The answer to that question will give the oil market direction. However, there are concerns that oil prices will fall if the delays do not come.
The group, which pumps about half of the world’s oil, has previously said it would gradually roll back its oil output cuts by small increases over months in 2024 and 2025.
Brent and WTI have lost more than 3% so far this week under pressure from Israel’s ceasefire agreement with Lebanon’s Hezbollah group. The ceasefire began on Wednesday and helped ease concerns that the conflict could disrupt oil supplies from the Middle East’s top oil-producing region.
The broader geopolitical backdrop for oil and how long the pause in fighting will last are uncertain.
Oil prices have been undervalued in recent days due to market volatility, and potential sanctions imposed by U.S. President-elect Donald Trump pose a potential risk to Iranian supplies.
