Crude Supported By Weaker USD & Upcoming OPEC Meeting
Oil prices are around 0.8% higher during APAC trading buoyed by growing speculation whether OPEC may reduce output further at its next meeting on November 26. Brent has broken above $81 and is currently around $81.23/bbl and WTI breached $76 and is at $76.66. Crude has been supported by a weaker dollar (USD index -0.3%) following the PBoC’s strongest yuan fixing since August.
- Saudi Arabia and Russia are widely expected to extend their voluntary production cuts into 2024 but there are growing thoughts that the rest of OPEC+ may announce an output reduction at the meeting this weekend given that prices are now little changed on the end of last year.
- A softer greenback can boost crude as it reduces the cost for overseas purchasers.
- Later Fed’s Barkin speaks and the October US leading index prints. Also ECB’s Lane appears.