Oil prices rise on hopes of OPEC+ delay, easing Middle East tensions

Brent crude oil futures rose above $73 per barrel on November 27, as traders braced for a further delay in the planned increase in oil output by OPEC+.

The market’s optimism was bolstered by a reduction in geopolitical risks following the announcement of a ceasefire between Israel and Hezbollah, Caliber.Az reports via foreign media. 

The oil market is keenly awaiting the upcoming OPEC+ meeting on December 1, with reports suggesting that the group is likely to delay its planned production boost in January for several months. This decision comes in response to concerns about a potential supply glut.

On the geopolitical front, tensions in the Middle East appeared to ease after Israel and Hezbollah reached a 60-day ceasefire agreement, brokered through US-mediated talks. However, both parties resumed hostilities soon after President Joe Biden's announcement, highlighting the difficulties in securing a long-term peace agreement.

In terms of demand, API data showed a significant 5.9 million barrel reduction in US crude inventories last week.

This marked the largest drop since August, and defied market expectations for a modest increase of 0.25 million barrels.

By Aghakazim Guliyev