According to the rahnam news agency, citing Reuters, the release of a number of hostages in Gaza has reduced geopolitical risks and lowered the price of oil. But oil is experiencing its first weekly price increase in a month ahead of the OPEC+ summit to decide on output cuts in 2024.
The price of a barrel of Brent North Sea oil today decreased by 84 cents, equivalent to 1.03%, to 80 dollars and 58 cents. US West Texas Intermediate crude is trading at $1.56 cents, equivalent to a 2.02% decrease to $75.54 cents.
The first group of hostages were exchanged on Friday, the first day of a four-day ceasefire. This measure to reduce geopolitical risks was very noticeable.
Both of these oil indices are experiencing their first weekly price increase in five weeks, as members of the OPEC+ alliance prepare for a summit to decide on their production levels. Oil prices have recently fallen due to concerns about demand and increased supply, especially from non-OPEC producers.
The OPEC+ alliance, made up of the Organization of the Petroleum Exporting Countries and its allies including Russia, shocked the market on Wednesday by postponing the November 26 meeting to November 30. It seems that the producers of this group have not been able to agree on the production level.
According to some OPEC+ sources, the alliance has managed to come close to an agreement with African producers on production levels in 2024.
The news of the postponement of the meeting sent Brent crude down 4 percent and US crude down 5 percent on Wednesday. The trading level has been low in the past days due to the holiday in America.
On the other hand, an improvement in China’s short-term economic outlook has supported oil prices. But the increase in US crude oil reserves and the decrease in profit margins in this country can reduce demand and neutralize the positive effect of China’s economic recovery.
On the other hand, analysts predict that demand growth in China will decrease by 4% in the first half of next year, and the weakness of the housing sector will affect diesel consumption.
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