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2022-11-30 11:55:00

OIL PRICE: BRENT NEAR $84, WTI BELOW $79

OIL PRICE: BRENT NEAR $84, WTI BELOW $79

REUTERS - Nov 28 - Oil prices firmed in Asian trade on Wednesday on falling U.S. crude inventory figures from API, a lower greenback and some optimism on the outlook for China's demand and economy.

A high likelihood that OPEC+ would leave output unchanged at its upcoming meeting limited gains.

Brent crude futures had firmed 70 cents or 0.84% to $83.73 per barrel by 0732 GMT, while U.S. West Texas Intermediate (WTI) crude futures climbed 56 cents or 0.72% to $78.76 per barrel.

The market is still in a contango structure, with forward month futures trading higher than the prompt month futures.

Helping to boost prices, U.S. crude oil stocks were expected to have dropped by about 7.9 million barrels in the week ended Nov. 25, according to market sources citing American Petroleum Institute figures on Tuesday.

Official figures are due from the U.S Energy Information Administration on Wednesday.

Optimistic sentiment in relation to China contributed to the uptrend in the Asian afternoon trade.

"China's weak PMI data may have been digested already as the recent reopening optimism overshadows the lagging economic data," said CMC market analyst Tina Teng, referring to the purchasing managers' index for November, issued earlier on Wednesday.

China also reported fewer COVID-19 infections than on Tuesday, amid market speculation of weekend protests possibly prompting loosening in COVID-19 movement restrictions. Guangzhou, a southern city, relaxed COVID prevention rules in several districts on Wednesday.

With current lockdowns, real-time data indicates only a small downturn in traffic, with national traffic in the fourth week of November at 95% of 2019 levels, compared with 97% earlier in the month, according to Rystad Energy senior vice president Claudio Galimberti. That signalled better-than-expected fuel demand domestically.

Galimberti estimated that Brent would trade higher around $90 a barrel and WTI around $83 a barrel in the first half of December.

Asian shares also rebounded on Wednesday as investors pinned hopes on China eventually reopening its economy.

Slight support also came from a weaker U.S. dollar. Fed Chair Jerome Powell is scheduled to speak about the economy and labour market at a Brookings Institution event on Wednesday, when investors will be looking for clues about when the Fed will slow the pace of its aggressive interest rate hikes.

"Energy markets are not properly pricing how resilient the global economy remains and this week we could see an upward revision with the U.S. Q3 GDP reading," senior analyst Edward Moya at OANDA said in a client note.

Thin liquidity and an overall lack of trading volumes towards the year-end could also be propping up the market, according to Virendra Chauhan at Energy Aspects.

On the supply side, the OPEC+ decision to hold its Dec. 4 meeting virtually signals little likelihood of a policy change, a source with direct knowledge of the matter told Reuters on Wednesday.

"Oil's rally ran out of steam after reports that OPEC+ might end up keeping their output steady. Expectations were growing for them to seriously consider an output cut," Moya added.

-----


Earlier:

OIL PRICE: BRENT NEAR $84, WTI BELOW $79
2022, November, 28, 10:25:00
OIL PRICE: BRENT BELOW $82, WTI BELOW $75
Brent dropped $2.16, or 2.6%, to trade at $81.47 a barrel, WTI slid $2.08, or 2.7%, to $74.20 a barrel.
OIL PRICE: BRENT NEAR $84, WTI BELOW $79
2022, November, 28, 10:20:00
OPEC EVALUATES THE MARKET
OPEC+ agreed on Oct. 5 to slash its production quotas by 2 million b/d starting in November, saying it was a "technical decision" aimed at averting the impact of a potential global recession.
OIL PRICE: BRENT NEAR $84, WTI BELOW $79
2022, November, 28, 10:05:00
RUSSIAN OIL FOR CHINA, INDIA
China and India now purchase two-thirds of all the crude exported by sea from Russia; at least half of the crude exported by pipeline from Russia also goes to China.
OIL PRICE: BRENT NEAR $84, WTI BELOW $79
2022, November, 25, 11:00:00
OIL PRICE: BRENT BELOW $86, WTI ABOVE $78
Brent rose by 41 cents, or 0.48%, to trade at $85.75 a barrel, WTI went up by 57 cents, or 0.73%, from Wednesday's close to $78.51 a barrel.
OIL PRICE: BRENT NEAR $84, WTI BELOW $79
2022, November, 25, 10:55:00
OPEC BALANCES THE MARKET
OPEC producers UAE and Saudi Arabia have denied a media report that suggested OPEC+ members are planning on increasing crude production by 500,000 barrels per day ahead of their next meeting on December 4.
OIL PRICE: BRENT NEAR $84, WTI BELOW $79
2022, November, 25, 10:45:00
RUSSIA, IRAQ COOPERATION
С обеих сторон дана положительная оценка совместной с участием России и Ирака работе в рамках «ОПЕК плюс», позволяющей обеспечивать стабильность мирового нефтяного рынка.
OIL PRICE: BRENT NEAR $84, WTI BELOW $79
2022, November, 23, 10:40:00
OIL PRICE: BRENT BELOW $89, WTI NEAR $81
Brent dropped 15 cents, or 0.2%, to $88.21 a barrel, WTI lost 9 cents, or 0.1%, to $80.86 a barrel.
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Tags: OIL, PRICE, BRENT, WTI, OPEC, RUSSIA, SANCTIONS