Oil prices dipped in Asia trade on Thursday as uncertainty lingered ahead of Sunday’s OPEC+ meeting, though easing COVID curbs at the world’s top crude importer China capped price declines.
Brent crude futures fell 25 cents, or 0.3 percent, to $86.72 per barrel, while US West Texas Intermediate crude futures eased 17 cents, or 0.2 percent, to $80.38.
The benchmark oil contracts settled higher by over $2 on Wednesday amid a weaker dollar and optimism over Chinese demand recovery.
“The market remains uncertain about OPEC’s decision, with some expecting a cut while others suggest a rollover of the current deal is more likely,” ANZ research analysts said in a note on Thursday.
The market is also bracing itself for the impact of European sanctions on Russian oil, the analysts added.
The Organization of the Petroleum Exporting Countries and allies including Russia, known as OPEC+, is scheduled to meet virtually on Dec. 4.
The decision to hold its meeting virtually signals little likelihood of a policy change, sources told Reuters on Wednesday, as the group assesses the impact of the looming Russian oil-price cap on the market.
Meanwhile, sentiment was lifted by the shift in China’s zero-COVID strategy, which raises optimism over Chinese oil demand recovery. – Reuters
