Oil declined for a second day as US inventories expanded and discord within OPEC+ forced the group to delay its upcoming meeting, quelling speculation of further production cuts.
West Texas Intermediate fell below $77 a barrel after a volatile session on Wednesday that saw prices swing by more than $4, while Brent ended below $82. OPEC+ delayed the meeting to the end of the month as disputes arose over output quotas for African members including Angola and Nigeria. Trading on Thursday will likely be thin due to the US Thanksgiving holiday.
In the US, nationwide crude inventories rose by 8.7 million barrels last week — the fifth straight increase and well above estimates — to the highest since July, Energy Information Administration data showed. Stockpiles at the Cushing hub also expanded.
Crude has been buffeted in recent weeks by indications that non-OPEC output is expanding, prompting speculation that the Organization of Petroleum Exporting Countries and its allies would decide to extend production cuts or possibly deepen them. Amid signs of abundant supplies, Europe is contending with a glut due to a combination of lackluster demand and an influx of US cargoes.
The OPEC+ meeting delay “heightens the drama, probably not the outcome,” Citigroup Inc. analysts including Eric Lee said in a note. The bank expects that Saudi Arabia will roll a 1-million-barrel voluntary cut into 2024, while other OPEC+ members will broadly commit to existing quotas through next year, he said.
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