Oil & Gas


OPEC'S STRATEGIES AS OIL PRICES SET TO FALL AMID MIDDLE EAST CONFLICT.

JUMA SULEIMAN
2 months, 2 weeks

Oil prices remain steady on Monday, but they are expected to decline for the third consecutive month. Despite concerns that Israeli strikes in Lebanon and Yemen could escalate Middle East tensions, a strong supply outlook and questions around global demand have kept prices down. Brent crude futures for November delivery fell slightly, while the December contract saw a minor rise.

Both Brent and U.S. West Texas Intermediate (WTI) had initially gained over $1 before retreating. Brent is set to drop nearly 9% this month, its biggest fall since November 2022, while WTI is on track for a 7% decline since August. The potential involvement of Iran in the ongoing Middle East conflict briefly supported prices but did not cause a significant rally.

OPEC has responded to the current challenges in the oil market by planning to gradually increase production starting in December. They anticipate a rise in global demand, estimating an increase of about 2.2 million barrels per day in 2024, although analysts have differing views on this outlook. OPEC remains cautious, emphasizing the need for careful monitoring of market dynamics and economic factors that could influence prices.

In addition, news of Libyan crude exports returning and Saudi Arabia potentially backing away from a $100 per barrel target further weighed on prices. Markets are also watching for signals from Federal Reserve Chair Jerome Powell regarding the U.S. central bank’s monetary policy.


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