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The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, known as OPEC+, are set to hold a meeting on Dec. 4. Analysts at Eurasia Group suggested in a note on Monday that weakened demand out of China could spur OPEC+ to cut output. OPEC+ started to lower its output target by 2 million barrels per day (bpd) in November, aiming to shore up oil prices. read moreMarkets are also assessing the impact of an upcoming Western price cap on Russian oil. read moreThe price cap is due to come into effect on Dec. 5, when an EU ban on Russian crude also takes effect.
Oil prices slide on concerns over China's demand
  + stars: | 2022-11-29 | by ( Yuka Obayashi | Jack Graham | ) www.reuters.com   time to read: +2 min
Summary Investors also eye on next OPEC+ output meeting on Dec. 4EU fails to agree on Russian oil price cap, say diplomatsTOKYO, Nov 29 (Reuters) - Oil prices dropped in early trade on Tuesday, weighed down by concerns about slowing fuel demand in top crude importer China amid strict COVID-19 curbs. "Bearish moods toward oil prices are spreading in Asia due to concerns about a decline in China's demand while the rare protests over the weekend also raised fears over the impact on Chinese economy," said Toshitaka Tazawa, an analyst at Fujitomi Securities Co Ltd. Analysts at Eurasia Group suggested in a note on Monday that weakened demand out of China could spur OPEC+ to cut output. Markets are also assessing the impact of an upcoming Western price cap on Russian oil. read moreThe price cap is due to come into effect on Dec. 5, when an EU ban on Russian crude also takes effect.
Pumpjacks are seen during sunset at the Daqing oil field in Heilongjiang province, China August 22, 2019. Brent crude futures dropped 26 cents, or 0.3%, to $90.36 a barrel by 0040 GMT after falling $1.38 the previous day. Gasoline inventories rose by about 3.2 million barrels, while distillate stocks rose by about 1.5 million barrels. API/U.S. crude oil and distillate stockpiles were expected to have risen last week, while gasoline inventories were seen lower, according to an extended Reuters poll. The shortfall highlights underlying tightness of supply in the market, even as recession fears drag prices lower.
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