Oil prices remain mixed as Thanksgiving holiday limits activity

29 November 2019 (Last Updated November 29th, 2019 11:21)

Oil prices remain mixed due to slow trade with the US Thanksgiving holiday limiting activity, and as investors watch for OPEC+ alliance meeting output.

Oil prices remain mixed due to slow trade with the US Thanksgiving holiday limiting activity, and as investors watch for OPEC+ alliance meeting output.

Brent crude futures slipped 8 cents at $63.79 a barrel, while West Texas Intermediate (WTI) futures rose four cents at $58.15 a barrel, reported Reuters.

Currently, investors are awaiting the meeting of the Organization of the Petroleum Exporting Countries (OPEC) and other oil producers including Russia next week, known as OPEC+. OPEC+ has agreed to cut its output by 1.2Mbpd until March next year to support prices. According to Reuters, analysts expect an extension of the deal as production in the US keeps rising.

Reuters quoted Fitch Solutions as saying in a note: “It is highly probable that the group will rollover the deal in its current form until at least the end of 2020, but we see limited scope for a new round of cuts, in light of uneven compliance and diminishing returns.”

Oil companies in Russia did not change their production quota, adding pressure on OPEC+ to avoid making any major shift in the policy when the group meets in Vienna next month.

AxiTrader Asia chief market strategist Stephen Innes said: “Still, risk-neutral is an excellent spot to be ahead of the weekend as there is a ton of headline risk that could upset the apple cart.”

Regarding US legislation supporting anti-government protesters in Hong Kong, China warned the US that it would take strong counter measures on the country’s actions. Investors are worried on China’s comments doubting that the move would further lead to a delay in the interim deal between the two biggest nations.