Oil prices remained steady on Monday as concerns about the US Federal Reserve’s interest rate decision weighed on market optimism about China’s factory activity.
Brent crude futures slipped 8 cents to $71.75 a barrel, while US West Texas Intermediate crude eased 3 cents to $67.99. A private sector survey showed China’s factory activity expanded at its fastest pace in five months in November, boosting Chinese business optimism.
However, US President-elect Donald Trump’s ramped-up trade threats and concerns about the Fed’s rate decision on interest rates also impacted market sentiment. Atlanta Federal Reserve President Raphael Bostic said he has an open mind about cutting interest rates again at the December meeting, which could affect oil prices.
The Organization of the Petroleum Exporting Countries (OPEC+) will discuss oil policy on December 5, with some traders watching developments in Syria and the ceasefire between Israel and Lebanon. OPEC+ sources indicated that a planned oil output increase scheduled to start in January may be delayed, which could alleviate downward pressure on prices.
Overall, market sentiment remains cautious ahead of the Fed’s decision, while China’s strong factory activity provides a glimmer of hope for the oil market.
Source: https://www.reuters.com/markets/commodities/oil-inches-up-upbeat-china-data-shaky-israel-lebanon-ceasefire-2024-12-02