Oil prices edge down ahead of OPEC+ meeting as demand concerns resurface

Oil prices have dribbled just a little lower in Asia trade.

The move is very small ahead of the OPEC+ meeting later today:

  • OPEC + is the Organization of Petroleum Exporting Countries and its allies such as Russia
  • Scuttlebutt on the meeting outcome has focused on potential additional production cuts

As we head into the meeting demand concerns have rekindled from the China data:

  • China November PMIs: Manufacturing 49.4 (expected 49.7) Services 50.2 (expected 51.1)
  • Both manufacturing and services missing estimates and lower than October.
  • Manufacturing activity for a second
    straight month in November
  • Manufacturing contracted quicker than it did last month

On the supply front the U.S. Energy Information Administration data on Wednesday
reported a surprise build in US crude oil and distillate fuel
stocks:

  • Weekly EIA inventories crude oil +1609K versus -933K expected
  • gasoline stocks by more than expected

This too points to likely softer demand.

This article was written by Eamonn Sheridan at www.forexlive.com.

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