Oil prices drop ahead of OPEC+ meeting

Oil prices dropped on Monday, as investors are waiting for the Organisation of the Petroleum Exporting Countries (OPEC+) meeting later this week for an agreement to restrain supplies into 2024.

Currently, Brent crude futures are down 37 cents, or 0.5 percent, trading at $80.21 a barrel by 0231 GMT, while U.S. West Texas Intermediate (WTI) crude futures trading at $75.18 a barrel, down 36 cents, or 0.5 percent.

Both benchmarks increased slightly last week, their first weekly gain in five weeks.

Additionally, both contracts were reinforced by expectations that Saudi Arabia and Russia could overturn voluntary supply cuts into early 2024.

OPEC+ may discuss plans to reduce further.

The group has moved closer to a compromise, four OPEC+ sources told Reuters on Friday.

ING Group analysts said market sentiment is still negative in light of the dispute within OPEC+ over the production quotas.

However, they expect Saudi Arabia to roll over its additional voluntary cut of one million barrels per day into next year.

Oil prices have also stabilised after geopolitical tensions dialled down in the Middle East following a ceasefire in Gaza and an exchange of hostages and prisoners.