Brent futures traded around $72 a barrel after slipping 3% last week, with West Texas Intermediate above $68. China’s factory activity expanded for a second month in November, a tentative sign of recovery in the biggest crude importer after a raft of stimulus measures were announced in late September. Meanwhile, OPEC+ delayed their meeting on supply by four days.
Traders will look for clues on future policy at the gathering, where the group is widely expected to delay a slight increase of production for a third time. Oil has been trading in a range of less than $6 since mid-October, buffeted by geopolitical developments in the Middle East and Russia, the prospect of another Trump presidency and the outlook in China.
“Oil prices remain largely range-bound, with plenty of uncertainty heading into the OPEC+ meeting,” said Warren Patterson, head of commodities strategy for ING Groep NV. “While the market does not need additional supply from the group next year, the challenge is finding a balance between trying to support the market and limiting its loss in market share.”
Meanwhile, the dollar was higher after US President-elect Donald Trump warned BRICS nations not to create an alternative currency to the greenback.
