NYMEX crude oil holds steady with Tokyo markets shut, eyes on OPEC

Investing.com - Crude oil prices held steady in early Asia on Monday with markets in Tokyo shut and ahead of a key OPEC meeting later this week.

On the New York Mercantile Exchange, crude oil for delivery in January traded at $76.68 a barrel, flat.

On the ICE Futures Exchange in London, Brent for January delivery jumped $1.19, or 1.3% to settle at $80.36 a barrel by close of trade Friday. London-traded Brent futures hit a session high of $81.61 a barrel earlier in the day, the most since Nov. 12.

Last week, oil futures ended higher as investors bet that fresh stimulus efforts in China and the euro zone will lead to increased global demand.

The People's Bank of China cut its benchmark one-year deposit rate by 25 basis points to 2.75% and trimmed its one-year lending rate by 40 basis points to 5.6%.

The move came in response to recent signs of a slowdown in the world’s second-largest economy.

China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.

Meanwhile, European Central Bank President Mario Draghi reiterated on Friday that the central bank is ready to expand its stimulus program to raise inflation and boost growth as quickly as possible.

Market players continued to weigh the likelihood that the Organization of the Petroleum Exporting Countries will cut output to support prices when it meets in Vienna on November 27.

Oil ministers from Venezuela and Ecuador have asked for action to prevent further price declines, while Saudi Arabia and Kuwait have resisted calls to lower production.

Concerns over weakening global demand combined with indications that OPEC producers will not cut output have weighed on prices in recent months.

In the week ahead, the U.S. is to release a string of economic reports on Wednesday due to Thursday’s Thanksgiving holiday, including a look at unemployment claims and durable goods orders.