Oil prices recorded very slight changes amid uncertainty about a possible deal of OPEC for limiting of production. Moreover, because of Thanksgiving in the US, which is holiday, the market participants refrain from big bets. The price of US light WTI crude decreased by 0.04% to 47.92 USD per barrel, while the price of European Brent oil fell by 0.14% to 48.88 USD per barrel.
OPEC will hold a formal meeting on November 30, on which will probably have a representative of Russia, which is not a member of the cartel. The large producers have to negotiate the details of the preliminary agreement by the end of September. Then OPEC countries agreed to limit the oil production to about 32.5-33.0 million barrels per day, which should reduce the overcapacity on the market and support the price growth.
Meanwhile, the Energy Information Administration of the United States reported that oil reserves have recorded a decline of 1.3 million barrels in the week to November 18. The market participants were expecting an increase of 0.671 million barrels. Stocks in the repository Cushing, at State of Oklahoma, which fell by 0.087 million barrels.
Vacation around Thanksgiving lowered interest of traders, the outcome of the OPEC meeting next Wednesday is the only factor in the energy sector. Many analysts believe that there will be a deal to lower yields, but it is uncertain exactly when and whether it will be enough to encourage market suffering from oversupply for more than two years.
Moreover, the strong dollar weighs on oil prices. The dollar index rose to its highest levels since 2003. The strong dollar, in which oil is denominated makes crude more expensive for holders of other currencies and thus can lower demand.
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