2023.11.2308:57:00UTC+00Oil Extends Losses After OPEC Delay

Oil prices fell sharply on Thursday to extend losses from the previous session on signs of increasing U.S. inventories and amid disappointment over postponement of the OPEC+ ministerial meeting.

Brent crude futures dropped 1.6 percent to $80.67 per barrel, while WTI crude futures were down 1.5 percent at $75.97.

Supply concerns intensified after the OPEC+ group delayed its meeting by four days due to a disagreement over production levels.

The meeting is now postponed to November 30th. OPEC has not given any reason for the postponement.

But media reports suggest that Saudi Arabia is finding it tough to convince Angola and Nigeria to accept lower output targets.

Signs of increasing U.S. crude stocks also weighed on prices.

Data released by Energy Information Administration (EIA) showed crude inventories, excluding the strategic reserve, increased by 8.7 million barrels in the week ended November 17th, substantially higher than an expected increase of about 1.2 million barrels.

The EIA data also showed that gasoline stockpiles surged 749,000 barrels last week, as against forecasts for a drop of about 150,000 barrels, while distillate stockpiles fell by 1.02 million barrels in the week, against expectations for a 761,000-barrel decline.