- WTI crude oil prices declined following the start of a truce in the Gaza Strip.
- OPEC+ postpones crucial meetings, sparking speculations of potential oil production cuts for 2024.
- Global factors like higher US crude stockpiles, China's uncertain oil demand, and non-OPEC production growth contribute to Oil price trends.
West Texas Intermediate (WTI), the US Crude Oil benchmark, fell on Friday as the release of some hostages in Gaza reduced geopolitical tensions. The daily chart showed prices at $75.13 per barrel, even though global business activity witnessed an uptick.
WTI falls to $75.13 per barrel as Gaza truce reduces Middle East risks, while OPEC+ meeting delay and production discussions influence market
A planned truce in the Gaza Strip began, aimed to allow the exchange of hostages between Israel and Hamas. Hence, reduced geopolitical tensions weighed in on oil prices, which usually tend to rise amid risks in the Middle East. However, Oil bears are not out of the woods yet, as the upcoming OPEC+ meeting is awaited, with crude Oil production cuts for 2024 looming.
The OPEC+ delayed its meeting from November 26 to November 30 as countries discussed Oil output levels. The delay led to a significant drop of 5% on Wednesday before WTI trimmed some of its losses to just 1.30%.
There are indications that OPEC+ is making progress toward a compromise with African oil-producing countries regarding production levels for 2024. This development suggests ongoing negotiations and discussions within the group to establish production quotas for the coming year.
While WTI could witness an uptick if OPEC+ cuts its production, higher US Crude stockpiles, and lower refining margins can put a lid on Oil prices.
Additionally, China's longer-term oil demand outlook remains uncertain. Analysts suggest that oil demand growth in China could weaken to around 4% in the first half of 2024, mainly due to challenges in the property sector that may impact diesel consumption.
Furthermore, non-OPEC production is expected to remain robust, with Brazil's state energy company, Petrobras, planning significant investments to boost output. This could contribute to global oil supply, potentially limiting upward price movements.
WTI Technical Levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD deflates to three-day lows around 1.1130
The euro remains under heavy pressure on Friday, with EUR/USD retreating toward the 1.1130 level to hit new three-day troughs. Despite a weaker reading in the U-Mich index in May, the US Dollar found support as inflation expectations ticked higher.
GBP/USD slips back to 1.3250 on USD-buying
GBP/USD recedes to the mid-1.3200s on Friday session, as the Greenback regains ground against the broadeer risk-linked universe. Supporting the upside in the US Dollar comes a rise in US consumer inflation expectations, according to the latest data from the U-Mich survey.
Gold looks depressed below $3,200
Gold reversed course on Friday, falling sharply below the $3,200 mark after Thursday’s strong rally. The retreat came as a resurgent US Dollar and easing geopolitical tensions weighed on demand for the safe-haven metal. Furthermore, XAU/USD remained under pressure and is on track to log its biggest weekly loss of the year.
Is Ethereum's comeback real?
Ethereum price hovers above $2,500 on Friday after soaring nearly 100% since early April's bottom. The ETH Pectra upgrade has boosted over 11,000 EIP-7702 authorizations in a week, indicating healthy uptake by wallets and dApps.
Trump’s Middle East dealmaking blitz: What does it mean for investors?
President Donald Trump’s May 2025 Middle East visit has unleashed a flurry of mega-deals, aimed at deepening U.S. trade ties, correcting trade imbalances, and reinforcing America’s leadership in defense and technology exports.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.