Oil prices retreated sharply again near the close on Wednesday, December 1, although the losses were less severe than before. Brent fell 1.8% to $68.62/bbl, rolling back to levels seen in August, while WTI dropped 2% to $65.36/bbl.
OPEC’s regular JTC meeting held yesterday did not yield any concrete results given that the issue of oil output quotas was not on the agenda in December. The meeting’s attendees decided to discuss this key issue today, at the OPEC+ ministerial meeting. Yesterday, a meeting of the OPEC+ Technical Committee was also held, which turned out to be much more important for the oil market, since the committee forecast an increase in oil supply by 2 mln bpd in January 2022, and by 3.8 mln bpd in February and March. The numbers spooked the market, which fears that a new imbalance could be in the offing.
Oil prices are on the rise this morning ahead of today's decision by OPEC+ on oil production. Brent was up 1.34% at $69.81/bbl, and WTI was trading 1.45% higher at $66.54/bbl by the time of writing. Our Brent price forecast for today is in the range of $68.8-70.5/bbl.