The price of oil extends its falls in waiting mode before the OPEC meeting

The price of oil falls this Monday for the fourth consecutive session as traders anticipate the meeting of the OPEC+ producers’ cartel and while financial markets in general maintain the positive tone of the last month.

The price of a barrel of Brent oil, a reference in Europe, has fallen below $80 per barrel after falling nearly 3% in the last three sessions, while West Texas Intermediate (WTI) drops below $75.

Crude falls after China’s industrial companies saw profits rise at a much slower pace in October, highlighting risks to growth in the world’s largest oil importer.

Beyond the macroeconomic data, investors’ focus is on next Thursday’s meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies – encompassed in the acronym OPEC+ – after it has been postponed due to disagreements. around production quotas among its partners.

OPEC announced last week that the summit scheduled for this Sunday, November 26, would be held on Thursday the 30th amid speculation to adopt a new production cut by Saudi Arabia and Russia. However, some African partners such as Nigeria or Angola were not in favor of the manpower.

Brent and West Texas oil prices have fallen nearly 20% from late September highs due to increased supply from non-OPEC+ countries and a decline in the risk premium for the war between Israel and Hamas.

The International Energy Agency (IEA) predicted earlier this month that the market would return to overproduction next year. Analysts point to the lack of discipline in meeting production quotas as a factor that may continue to push prices down.

Market metrics have signaled a weakening market. The difference between the two closest expiring WTI contracts, known as the Prompt spread, has been around 25 cents per barrel in a contango situation, a bearish pattern in which spot prices trade at a discount. . with respect to the future. A month ago, the gap had been 84 cents per barrel in forwardation, the opposite situation.