• Sign up for the Daily Digest E-mail
  • Facebook
  • Twitter
  • LinkedIn

BOE Report

Sign up
  • Home
  • BOE Intel
  • Headlines
    • Latest Headlines
    • Featured Companies
    • Columns
    • Discussions
  • Well Activity
    • Well Licences
    • Well Activity Map
  • Property Listings
  • Land Sales
  • M&A Activity
    • M&A Database
    • AER Transfers
  • Markets
  • Rig Counts/Data
    • CAOEC Rig Count
    • Baker Hughes Rig Count
    • USA Rig Count
    • Data
      • Canada Oil Market Data
      • Canada NG Market Data
      • USA Market Data
      • Data Downloads
  • Jobs

Oil up on lower U.S. crude stocks and dollar, OPEC+ and China concerns limit gains

November 30, 20227:30 AM Reuters0 Comments

Pump jack in Saskatchewan winter.

Oil prices posted gains on Wednesday on falling U.S. crude inventories and a lower greenback, but concerns OPEC+ will leave output unchanged at its upcoming meeting and weak China data limited gains.

U.S. West Texas Intermediate (WTI) crude futures climbed $1.96 or 2.48% to $80.89 per barrel. 

CL1! chart by TradingView
Brent crude futures firmed $2.12 or 2.50% to $87.01 per barrel.

Helping to boost prices, U.S. crude oil stocks were expected to have dropped by about 7.9 million barrels in the week ended Nov. 25, according to market sources citing American Petroleum Institute figures on Tuesday.

Gasoline inventories rose by about 2.9 million barrels, while distillate stocks were seen rising about 4.0 million barrels, according to the sources, who spoke on condition of anonymity.

Official figures are due by the U.S Energy Information Administration on Wednesday.

Slight support also came from a weaker U.S. dollar. Fed Chair Jerome Powell is scheduled to speak about the economy and labour market at a Brookings Institution event on Wednesday, when investors will be looking for clues about when the Fed will slow the pace of its aggressive interest rate hikes.

“Energy markets are not properly pricing how resilient the global economy remains and this week we could see an upward revision with the U.S. Q3 GDP reading,” senior analyst Edward Moya at OANDA said in a client note.

Thin liquidity and an overall lack of trading volumes towards the year-end could also be propping up the market, according to Virendra Chauhan at Energy Aspects.

On the supply side, OPEC+ is likely to keep oil output policy unchanged at a meeting on Sunday, five OPEC+ sources said, although two sources said an additional production cut was also likely to be considered, to support prices.

“Oil’s rally ran out of steam after reports that OPEC+ might end up keeping their output steady. Expectations were growing for them to seriously consider an output cut,” Moya added.

The group meets as slowing economies and Chinese COVD-19 lockdowns hit oil demand, while a nearing European Union ban on Russian crude imports and a G7 price cap on Russian crude raises questions about supply.

Gains were further tempered by continued concerns about China’s economy as data showed manufacturing and services activities shrank further in November to seven-month lows, weighed down by softening global demand and COVID-19 restrictions.

The official manufacturing purchasing managers’ index (PMI) stood at 48.0 against a 49.2 reading in October, the lowest reading in seven months, according to data from the National Bureau of Statistics (NBS).

On the positive side from China were fewer COVID-19 infections day on day and talks of some potential changes in COVID-19 movement restrictions.

Follow BOE Report
  • Facebook
  • Twitter
  • LinkedIn

Sign up for the BOE Report Daily Digest E-mail

Successfully subscribed

Latest Headlines
  • Oil prices edge higher as IEA’s Birol talks up China demand outlook
  • Ottawa expands price caps to Russian petroleum products to reduce revenues
  • Yangarra announces financial and operations update & year end corporate reserves information
  • International Petroleum Corporation announces acquisition in Southern Alberta
  • China’s oil demand bounce may push producers to reconsider output

Return to Home
Alberta Gas
CAD/GJ
Market Data by TradingView

    Report Error







    Note: The page you are currently on will be sent with your report. If this report is about a different page, please specify.

    About
    • About BOEReport.com
    • In the News
    • Terms of Use
    • Privacy Policy
    • Editorial Policy
    Resources
    • App
    • Widgets
    • Notifications
    • Daily Digest E-mail
    Get In Touch
    • Advertise
    • Post a Job
    • Contribute
    • Contact
    • Report Error
    Featured In
    • CamTrader
    • Rigger Talk
    Data Partner
    BOE Network
    © 2023 Stack Technologies Ltd.