Oil prices edge lower ahead of OPEC meeting

Oil prices declined on Thursday following an unexpected rise in US gasoline inventories, with Brent crude down 0.27 per cent to $72.63 per barrel and WTI falling 0.29 per cent to $68.52 by 7:17 AM GMT.

The drop comes ahead of this weekend’s OPEC+ meeting, where members will discuss potential changes to oil output policy.

US gasoline stocks rose by 3.3 million barrels last week, countering expectations of a decline, according to the Energy Information Administration. Sluggish fuel demand in the US and China has pressured oil prices, though supply cuts by OPEC+ have cushioned losses.

OPEC+ sources indicated a potential delay to planned production hikes starting in January, a move largely priced into markets. Analysts warn oil prices could face further downward pressure if the deferments are shorter than expected or fail to materialise.

Additionally, geopolitical risks in the Middle East eased after a ceasefire agreement between Israel and Hezbollah, though concerns remain over its durability.

Attribution: Reuters