Because of the potential for an OPEC market reduction, crude oil prices stayed steady

 Because of the potential for an OPEC market reduction, crude oil prices stayed steady

As of November 22, the closing price of Brent crude was $82.31, down from $82.45, the day before. The meeting of OPEC and its partners on November 26 may result in more supply cutbacks to maintain prices.

Following last week's dip to a four-month low, oil prices are still steady.

Following a nearly four-month low last week, crude oil prices continued to rise on November 22 as cautious traders anticipated more production cutbacks from OPEC due to worries about low demand and excess supply.

The oil cartel, known as OPEC and its allies, or OPEC+, is scheduled to convene on November 26. During this meeting, production curbs to maintain crude prices may be extended.

Typical On November 22, Brent crude was pricing at $82.31 a barrel. It ended at $82.45,45 a barrel the previous day.

With swelling gasoline stocks troubling China, the world's top energy user, and its tourism industry showing no recovery, concerns about a downturn in demand are mounting. This occurs in the context of the International Energy Agency's (IEA) forecast of a supply surplus in 2024.

Even if OPEC+ countries continue their production cutbacks in 2019, there will be a little supply excess in the global oil market, according to the director of the IEA's oil markets and industry division, who spoke to Reuters on November 21.

In the meanwhile, traders are closely monitoring the possible effects of the Gulf of Mexico oil leak. The U.S. shore Guard said earlier this week that a pipeline close to the Louisiana shore allowed an estimated 1.1 million gallons of crude oil to spill into the Gulf of Mexico.

Crude oil prices increased by about five percent last month, just after Hamas surprised everyone by launching a huge onslaught on Israel on October 7 due to fears that supplies from the Gulf may be disrupted. But because the fighting had no direct effect on oil supply, prices fell.

The drop in oil prices will help state-owned oil marketing firms (OMCs), as refiners' stock witnessed double-digit increases earlier this week. In a research, Geojit Financial addressed the volatility of crude oil prices, stating that "there is a potential downside if it is unable to trade sustainably above $78." If not, the upward tendency may go on."

Observing the supply cut

At their meeting on November 26, OPEC and its partners, sometimes referred to as OPEC+, may decide to continue or expand its production curbs, which would help keep crude prices high.

Saudi Arabia and Russia, two OPEC members, have already promised to reduce production by 5.16 million barrels per day in response to declining oil prices and worries about demand.