Oil steadies after recording sharp decline last week

May 27, 2024 (MLN): Oil prices steadied following their largest weekly decline in four weeks, with attention now turning to the upcoming OPEC+ supply meeting scheduled for Sunday.

Brent crude traded near $82.36 per barrel, up by 0.29% on the day. Last week, it fell over 2.1%.

While West Texas Intermediate crude (WTI) was at $78 per barrel, up by 0.36% on the day.

The Organization of the Petroleum Exporting Countries and its allies will hold its policy meeting online, and is widely expected to prolong production cuts into the second half of 2024, as Bloomberg reported.

“Based on current market expectations that OPEC+ is likely to extend cuts, oil’s risks are skewed to the upside,” said Gao Jian, an analyst at Shandong-based Qisheng Futures Co.

Markets are closed on Monday for holidays in the UK and the US, where the Memorial Day weekend kicks off the summer driving season.

The number of people expected to fly over the weekend may be the highest in nearly 20 years, according to the American Automobile Association.

Brent is up about 7% this year, supported by persistent geopolitical risks and OPEC+’s 2 million barrels a day of output cuts.

Still, futures have fallen since mid-April as nervousness that the conflict in the Middle East would spread and disrupt oil flows have eased.