Crude oil prices reversed gains early Tuesday ahead of the OPEC+ meeting scheduled on Sunday, with investors anticipating the outcome of discussions about the producer group’s supply cuts.
Brent crude fell 1% to US$81.52 per barrel and West Texas Intermediate crude lost 1% to US$77.02/b at last look early Tuesday. Previously, prices saw gains as expectations grew that OPEC+ would announce deeper output cuts on top of Saudi Arabia’s voluntary cuts, which are likely to extend into 2024, ANZ Bank said in a Tuesday note.
Meanwhile, the geopolitical risk premium is dissipating amid the Israel-Hamas war, with the United Arab Emirates’ energy minister saying the conflict is not expected to have any impact on oil supply in the short term, the bank noted.
Increasing non-OPEC supply and rising US oil inventories have been putting pressure on the oil market recently as well, according to ANZ Bank.