Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Oil Down as Market Awaits OPEC+ Moves, New Data

CommoditiesNov 30, 2020 10:56PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Gina Lee

Investing.com – Oil was down on Tuesday morning in Asia, with investors unclear as to whether the world’s major producers would extend output cuts, which would support oil prices.

Brent oil futures were down 0.71% at $47.54 by 11:55 PM ET (3:55 AM GMT) and WTI futures fell 0.79% to $44.98.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies (OPEC+) put off output policy talks until Thursday, Reuters reported. The market is now waiting to see whether the organization will continue with current production cuts of 7.7 million barrels per day or curb those cuts. The group was originally set to ease cuts by about 2 million bpd starting in January, but demand remains weak.

Some investors were expectant that the cuts would happen.

"I suspect that, ultimately, OPEC+ will extend the production cut programme by three months," Mizuho Securities director of energy futures Bob Yawger told Reuters. 

But any accord would require some producers to agree to larger cuts moving forward, with those barrels being allocated to the United Arab Emirates (UEA) "for the balance of the agreement", Yawger added.

November was a strong month for oil, with both benchmarks rising by about 27% as investors held on to hopes that a vaccine would speed up a return to normalcy from COVID-19 lockdowns.

Investors are now weighing a renewed surge of COVID-19 cases around the world and new lockdowns in places as disparate as London, Hong Kong and New York as well as the likely approval of multiple COVID-19 vaccines in the coming weeks. Moderna Inc (NASDAQ:MRNA) will request clearance for its vaccine candidate mRNA-1273 in the U.S. and Europe, the company said on Monday.

Investors are also looking to distill testimony from U.S. Federal Reserve Chairman Jerome Powell and Treasury Secretary Steve Mnuchin on Monday to the Senate Banking Committee, both of whom said the US economy is on the path to recovery but will need some help. 

Mnuchin called on Congress to use the CARES Act, worth $455 billion, to put in place a stimulus package to give the economy a boost. Powell, in turn, pointed to moderate growth as a concern.

Powell will continue to testify before Congress later in the day and on Wednesday, with the Fed convening for its policy meeting on Dec. 15 and 16.

Also supporting prices, China’s Caixin manufacturing Purchasing Managers Index (PMI) for November came in at 54.9 in November, up from 53.6 in October.

Investors are now looking to crude oil supply data from the American Petroleum Institute, due later in the day.

Oil Down as Market Awaits OPEC+ Moves, New Data
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email