Oil Prices Decline Ahead of OPEC+ Meeting

Oil prices declined sharply this week, with both Brent and West Texas Intermediate crude falling over 7% as markets reacted to OPEC+ unexpectedly moving up its meeting to discuss production levels. The rescheduling heightened concerns that the alliance, led by Saudi Arabia, may opt for another output increase amid already abundant global supplies and weak Chinese demand. Saudi Arabia has signaled reluctance to support further supply cuts, suggesting a possible policy shift towards expanding market share. Broader market sentiment was somewhat supported by strong US payroll data and optimism over potential US-China trade talks, but these factors failed to offset bearish sentiment driven by supply and demand imbalances. Geopolitical risks, including possible US sanctions on countries buying Iranian oil, added further uncertainty. Investors remain cautious, awaiting the outcome of the OPEC+ decision, which is expected to set the tone for oil markets moving forward.