WTI extends its downside near $75.00, investors await the OPEC+ meeting

Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $75.00 so far on Monday. WTI loses momentum as oil traders await the outcome of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) meeting on Thursday.

Traders turn to a cautious mood amid the uncertainty over the oil supply cut by the OPEC+ after the group postponed a ministerial meeting to November 30. Saudi Arabia and Russia, the world's major oil exporters, are expected to extend oil supply cuts by 1 million barrels a day until next year, while OPEC+ members consider further supply cuts due to falling oil prices. If OPEC+ decides not to deepen output cuts next year, this could exert some selling pressure on WTI prices.

Nonetheless, the International Energy Agency (IEA) suggested that it anticipates a slight surplus in global oil markets in 2024, even if OPEC+ nations extend their production cut into the following year.

Furthermore, China’s NBS PMI reports on Thursday will be a closely watched event. The Manufacturing PMI is estimated to grow to 49.6 from 49.5 while the Services PMI is expected to rise to 51.1 from 50.6. The softer-than-expected PMI data could fuel the fear of a slowdown in Chinese oil demand. It’s worth noting that China is the major oil consumer in the world and the negative outlook on the Chinese economy might weigh on the WTI prices.

Looking ahead, oil traders will keep an eye on the US Gross Domestic Product (GDP) Annualized for the third quarter (Q3) on Wednesday and the Personal Consumption Expenditure (PCE) inflation on Thursday for fresh impetus. The highlight of this week will be the outcome of the OPEC+ meeting later this week. These events could significantly impact the USD-denominated WTI price. Oil traders will take cues from the data and find trading opportunities around WTI prices.