Oil switched between modest gains and losses as traders look ahead to this week’s OPEC+ meeting for signals of where the market is headed toward next.
Futures were little changed in New York after falling as much as 2.6% during a choppy trading session. The market is assessing the impact renewed coronavirus lockdowns will have on demand and the likelihood they spur OPEC+ to keep the reins on supply when the group meets to discuss output policy on Thursday.
U.S. equities fell as investors weighed to what extent a recent block trades selling spree would spread through financial markets. A strengthening U.S. dollar, which reduces the appeal of commodities priced in the currency, also weighed on crude futures.
“There’s volatility in the market coming from all over the place, and if the dollar continues to rip higher, that will not be good for crude,” said Bob Yawger, head of the futures division at Mizuho Securities. Still, “there’s support from the upcoming OPEC+ meeting. The virus situation right now is so dicey, it’s unlikely they can increase barrels.”
- WTI for May delivery rose 23 cents to $61.20 a barrel at 11:58 a.m. in New York
- Brent for the same month gained 3 cents to $64.60 a barrel
- Murban for June delivery traded at $63.38 a barrel on ICE Futures Abu Dhabi
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