Oil futures are stable on Tuesday, but concerns about global oversupply persist
Crude Oil

Oil futures are stable on Tuesday, but concerns about global oversupply persist

1 December 2015, 14:50
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Oil prices stay on the flat line on Tuesday while USD is slightly down. But it is expected that OPEC will not change production targets during a meeting scheduled on Friday this week. So, traders focus on concerns about global oversupply.

By this moment, Brent is around $44.59; WTI is $41.73.

This week, oil prices are most strongly influenced by following factors:

  • OPEC meeting (Friday, December 4);

  • U.S. nonfarm payrolls (Friday, December 4);

  • ECB's decision on monetary policy (Thursday, December 3);

  • U.S. Crude oil inventories (Wednesday, December 2).

Analysts expect that by the end of the year oil reserves will decline with seasonal patterns.

Meanwhile, the top oil exporter Saudi Arabia again brings down crude oil prices for Asian consumers. The official selling price (OSP) for Saudi's flagship Arab Light crude will fall by 20 – 40 cents in January. OSP for Arab Medium and Heavy crude can be expected to fall by 50 – 60 cents per barrel.

#oil, WTI, Brent
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