Closing Bell 20th November: Global Oil Markets Steady as OPEC+ Meeting Looms

Oil Market Stabilizes Ahead of OPEC+ Meeting

Oil prices have stabilized after recent fluctuations, with Brent crude hovering below $US81 a barrel and West Texas Intermediate near $US76. The market’s focus is now on the upcoming OPEC+ meeting, where decisions on supply that could affect the market into 2024 will be made. Despite recent declines in oil prices due to fading war-risk premiums from the Israel-Hamas conflict and concerns over robust supplies, speculation suggests that OPEC+ might extend supply curbs. US inventories have been increasing, leading to hedge funds reducing their bullish bets on oil.

RBA’s Busy Week with Speeches and Monetary Policy Minutes

The Reserve Bank of Australia (RBA) has a packed schedule this week, featuring several key events. Michele Bullock will participate in a panel at the ASIC Annual Forum and speak at the ABE Annual Dinner. Carl Schwartz is also set to speak at the Australian Securitisation Forum’s Conference. Furthermore, the RBA will release the minutes of its November 2023 Monetary Policy Meeting. The market will closely watch these events for insights into the RBA’s future policy direction, especially considering the recent softening in its tightening bias.

China Holds Benchmark Lending Rates Steady

China has kept its benchmark lending rates unchanged, with the one-year and five-year loan prime rates remaining at 3.45% and 4.2%, respectively. This decision aligned with market expectations and did not significantly impact regional indexes. The stability in China’s lending rates comes as the country continues to navigate its economic challenges, maintaining a steady approach in its monetary policy.