Oil remains steady

Oil prices have stabilized as signals of a new inventory build in the US emerged ahead of the OPEC+ meeting on supply scheduled for this weekend.

Global benchmark Brent held above $82 a barrel after closing with a moderate gain on Tuesday, while US crude was around $78. According to a report by Oilprice.com, the American Petroleum Institute reported that nationwide inventories rose by 9.05 million barrels last week, with levels in Cushing also increasing. Separately, AlphaBBL pointed to an expansion at the key Oklahoma hub.

Crude oil has been shaken in recent weeks by signs of expanding non-OPEC supply, fueling speculation that the Organization of the Petroleum Exporting Countries and its allies will extend or possibly deepen production cuts. Citigroup has placed the probability of further declines at one in five, while for Goldman Sachs, this probability is around one in three.

Vishnu Varathan, head of Asia economics and strategy at Mizuho Bank, said, "OPEC+ will likely signal a bias toward tightening at the meeting. The increased supply from rising US production in the fourth quarter and the easing of Venezuela sanctions will not be offset."

Goldman Sachs analysts, including Daan Struyven, noted in a November 21 note that an additional collective cut by OPEC+ would boost prices by a few dollars, while warning that such an outcome is not their base-case scenario.

News Source: 12punto