The global oil market is facing uncertainty as the Organization of the Petroleum Exporting Countries and its allies (OPEC+) postponed their production-cut meeting to November 30. The decision came early Thursday, pushing West Texas Intermediate (WTI) crude prices down near $76.20, although they slightly recovered to around $77.20 later in the day. This delay has heightened concerns about future crude supplies and market stability, especially in light of the recent Israel-Hamas tensions and a slowdown in demand growth from China. Saudi Arabia has indicated plans to continue with its ongoing production cuts of one million barrels per day.
In addition to these developments, the US dollar's resurgence may make dollar-denominated oil more expensive for foreign buyers. As markets closed for Thanksgiving Day on Friday, investors shifted their focus to the upcoming release of S&P Global PMI data. The Manufacturing PMI is expected to be at 49.8 and Services PMI at 50.4. These indicators are particularly significant for WTI price trends as oil traders search for signals within the economic data that could hint at future demand patterns.
The OPEC+ meeting's outcome is now highly anticipated by market participants who are eager to understand how the group will address the current geopolitical and economic challenges affecting the oil industry.
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