Oil prices paused ahead of the OPEC’s meeting

On Thursday, oil prices were quite muted after their previous growth for three days in a row. The slowdown was driven by observed economic problems, which the largest crude oil importer, China, is currently facing. Also, the prices were affected by market expectations for the upcoming meeting of the Organization of the Petroleum Exporting Countries (OPEC), within which a decision on a possible supply cut might be made.

At present, China doesn’t show its intention to abandon the restrictive measures on the COVID-19, which have had a great impact on the country’s economy this year, including reducing its crude oil consumption.

Now all of the attention is focused on the OPEC+ members’ meeting. In October, it resulted in the supply cut of 2 million barrels per day. Opinions on the possibility of yet another reduction are divided.

Nevertheless, oil prices increased sharply over the past few sessions after the release of information that the U.S. petroleum inventories shrank significantly more than expected in the previous week.

The prices got additional support from the weakening of the dollar caused by Federal Reserve (Fed) Chair Jerome Powell’s recent announcement about the slowdown in interest rate hikes in the near future.