Oil prices have dipped recently due to the US Thanksgiving holiday but the prices are expected to rebound as the OPEC countries are expected to meet next week and sign a pact to increase the global oil output in the coming months.
Brent crude futures were down by $1.20 at $62.67 a barrel but it’s looking like that the expected growth of 4.1% can be reached despite the recent poor show on the stock market. West Texas Intermediate futures were down by $1.90 to $56.21 which is on its track for a decline of 2.8% this week after posting an increase in the last three months. It is expecting a jump of around 3.6% after the meet which would be its highest since June.
Both benchmarks had increased slightly in November after the expectations of the first phase of the trade deal which should have been completed by the end of this year. That would help the oil sector to find out an expected demand for crude in the upcoming months.
However, after the US backing the government protestors in Hong Kong China has said that it would come out with stricter measures in response to the move. A rise in tariffs or new tariffs being imposed by the Chinese government seems to be on the cards.
It is expected that next week’s meeting between the OPEC countries will come out with a detailed road map that will give an idea of the global crude volume required and also stabilize the prices with no rate cuts.
Moscow meanwhile is supporting Saudi Arabia’s bid stabilize oil prices and the listing of one of the global giants Saudi Aramco as the next week’s meeting also coincides with the expected pricing band for the IPO. However, the investors are also concerned whether the main crude producing nations would agree to rate cuts.