Oil stabilises, market waits OPEC+ supply decisions

Oil stabilised following its largest weekly decline in four weeks, as attention turned to an upcoming OPEC+ supply meeting on Sunday and the onset of the summer driving season in the US, Bloomberg reported.

Holidays in both the UK and the US, with the Memorial Day weekend signalling the start of the summer driving season.

Brent futures remained above $82 per barrel after experiencing a 2.2 per cent drop last week and reaching their lowest point since early February, while West Texas Intermediate (WTI) hovered around $78.

The OPEC+ are scheduled to convene for their policy meeting virtually, widely anticipated to extend production cuts into the second half of 2024.

Gao Jian, an analyst at Shandong-based Qisheng Futures Co., remarked, “Based on current market expectations that OPEC+ is likely to extend cuts, oil’s risks are skewed to the upside,”

Brent crude has advanced approximately 7 per cent year to date, bolstered by ongoing geopolitical tensions and OPEC+’s continued reduction of 2 million barrels per day (bpd) in output. Nevertheless, futures have retreated since mid-April as concerns over the potential spread of conflict in the Middle East and its impact on oil supplies have eased.