SINGAPORE, Dec 3 Reuters Oil prices nudged higher on Tuesday but remained within a narrow trading range, as traders awaited the outcome of an OPEC meeting later this week.
Brent crude futures rose 31 cents, or 0.4, to 72.14 a barrel by 0704 GMT, after dropping 1 cent in the previous session. U.S. West Texas Intermediate crude climbed 26 cents, or 0.4, to 68.36, following a 10 cent gain on Monday.
Sources from the producer group said it will extend its latest round of output cuts until the end of the first quarter at its Dec. 5 meeting.
Given a rise in compliance with production cuts from Russia, Kazakhstan, and Iraq, the lower Brent price level, and indications in press reports, we assume an extension of OPEC production cuts till April, Goldman Sachs analysts said in a note.
OPEC, which includes the Organization of the Petroleum Exporting Countries and allies such as Russia, has been looking to unwind production cuts by the first quarter of 2025. However, the outlook for surplus supply has put pressure on prices. The group accounts for about half of the world39;s oil production.
I think there39;s no other option but to defer it, Priyanka Sachdeva, a senior market analyst at Phillip Nova said, adding that it could only be for just a month or so as there is a lot of pressure from participating nations to ramp up output.
Amid a lack of bullish catalysts and lacklustre demand, Sachdeva expects oil prices to trade in a limited range with a bias towards the downside….