Crude Oil Market Drops Ahead of OPEC+ Meeting

<p>&nbsp;Global crude oil prices are now continuing to decline with Brent oil heading towards $80 a barrel as investors await the OPEC+ meeting this weekend to draft a supply control agreement for 2024.</p><p><br /></p><p>Brent crude was down 39 cents (0.5%) to $80.19 a barrel and US West Texas Intermediate crude was also down 44 cents (0.6%) to $75.10.</p><p><br /></p><p>However, both of these contracts rose slightly in the past week. The first week's gains were supported by predictions that Saudi Arabia-Russia will launch voluntary supply cuts until early 2024 and that OPEC+ may discuss plans to further cut supplies.</p><p><br /></p><p>Last week, oil prices began to show a decline after the Organization of the Petroleum Exporting Countries and their allies including Russia (OPEC+) postponed a ministerial meeting to November 30 to resolve the problem of differences in the morning targets of African producers.</p><p><br /></p><p><br /></p><p>According to ING analysts, market sentiment remains on the negative side as the dispute in OPEC+ over production quotas is still pending. Meanwhile, Saudi Arabia expects to roll out its additional voluntary cuts of 1 million barrels per day next year.</p><p><br /></p><p>Goldman Sachs analyst Bula said that ahead of the OPEC+ meeting, it is estimated that crude oil exported by OPEC+ countries will decline 1.3 million barrels per day below the April level.</p><p><br /></p><p>The United Arab Emirates (UAE) plans to increase Murban crude oil exports by early next year following the new OPEC+ mandate and refinery maintenance.</p><p><br /></p><p>The International Energy Agency predicts a slight oil market surplus in 2024 even as countries in the group extend cuts.</p><p><br /></p><p>As predicted, oil prices will stabilize after geopolitical tensions subside in the Middle East following a cease-fire in Gaza to make room for hostage and prisoner exchanges.</p>