By Yuka Obayashi and Muyu Xu
TOKYO/SINGAPORE (Reuters) — Oil moved in a narrow range on Wednesday as investors turned cautious ahead of a crucial OPEC+ meeting to decide output policy in the next months, while a supply disruption in the Black Sea provided a floor for prices.
Brent crude futures dipped 3 cents to $81.65 a barrel at 0338 GMT. U.S. West Texas Intermediate (WTI) crude futures gained 12 cents, or 0.2%, at $76.53 a barrel.
Both benchmarks gained about 2% on Tuesday on the possibility the Organization of the Petroleum Exporting Countries and allies such as Russia (OPEC+), will extend or deepen supply cuts, as well as concerns over Kazakh oil output and a weaker U.S. dollar.
«Investors covered short positions ahead of the OPEC+ meeting amid worries over supply disruption from Kazakhstan,» said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan (OTC:NSANY) Securities.
«All eyes are on OPEC+ policy and demand outlook toward the end of this year, but WTI is expected to hover around $76, with a range of $5 each above and below, for a while unless OPEC+ significantly expands production cuts,» he said.
OPEC+ is due to hold an online ministerial meeting on Thursday to discuss 2024 production targets, after delaying the meeting from Nov. 26.
The talks will be difficult and a rollover of the previous agreement is possible rather than deeper production cuts, four OPEC+ sources said.
«If they (OPEC+) fail to come to a preliminary deal, we cannot rule out the risk that the meeting is further delayed, which would likely put some downward pressure on oil prices,» said Warren Patterson and Ewa Manthey, analysts from ING bank, in a note to clients.
«The outlook for the oil market in 2024 will largely depend on OPEC+Read more on investing.com