Oil prices recovering from previous sharp decline

Global oil prices are rising on December 1 after a sharp decline a day earlier, investors also expect tomorrow’s OPEC+ meeting, according to trading data, Report informs referring to Prime agency.

As of 9:03 (GMT+4), February futures for Brent crude rose 2.74% to $71.12 per barrel. The price for January futures for WTI oil increased by 2.6% to $67.89 per barrel.

Oil prices are recovering on December 1 morning after Brent crude fell below $68 a barrel and WTI fell below $65 a day earlier for the first time since August 23. As a result, prices decreased a little more, while for the entire November these prices saw the highest fall since March 2020 (when they collapsed by more than half): Brent fell by 17%, and WTI – by 20%.

Meanwhile, the OPEC+ meeting on December 2 remains one of the main upcoming events for oil investors. According to IG analysts, quoted by the Wall Street Journal, the focus is likely to be on possible changes to the terms of the oil production cut agreement. So far, it is assumed that the limit of this production will be increased by 400,000 barrels per day each subsequent month.

So far, Russia and Saudi Arabia have signaled that there is no need to adjust production volumes as they remain unconcerned about the spread of the omicron COVID-19 strain, the experts added.

Macro statistics may also have some influence on the market. On December 1 night, the American Petroleum Institute (API) announced a decrease in US oil reserves for the week through November 26 by an insignificant 0.75 million barrels, while analysts had expected a decline of 1.67 million barrels. Official data on last week reserves in the country will be later published by the US Department of Energy.