Oil prices fall ahead of OPEC meeting

Oil prices dipped ahead of the Organization of the Petroleum Exporting Countries’ meeting later today, while mounting tensions between Beijing and Washington bolstered gold prices.

Shreyansi Singh

Updated Aug 3, 2022, 15:47 IST

Representative Pic

Photo : iStock

KEY HIGHLIGHTS

OPEC+ meeting to start later today
OPEC+ cuts output forecast ahead of meeting: reports
Gold rises on mounting U.S.- China tensions

New Delhi: Oil prices slipped on Wednesday ahead of a meeting of OPEC+ at which producers are expected to keep production steady with limited spare capacity amid worries of a potential hit to demand from an economic slowdown across the globe.

Members of the Organization of the Petroleum Exporting Countries and allies including Russia, together known as OPEC+, are scheduled to meet today at 1130 GMT.

OPEC+ reportedly cut its forecast for this year's ahead of the meeting, slashing the market surplus estimate by about 200,000 barrels per day (bpd), to 800,000 bpd. Investors await the organization's roadmap for production in a market with tight supply.

Data from the American Petroleum Institute showed U.S. crude stocks rose by about 2.2 million barrels for the week ended July 29.

Gold rises on escalating U.S.- China tensions

Gold prices rose as mounting tensions between Unites States and China boosted its safe-haven appeal, while firmer U.S. Treasury yields put a lid on gains.

The precious metal held below the previous session’s one-month high.

China rolled out curbs on the import of fruit and fish from Taiwan, as a punitive measure against U.S. House Speaker Nancy Pelosi’s visit to Taiwan that has kindled a diplomatic firestorm.

Pelosi is the highest-profile elected U.S. official to visit Taiwan in 25 years.

Record interest rate hikes by central banks across the world have on the one hand cushioned the ailing economy, and on the other added to inflationary pressures.

Meanwhile, the Bank of England is also expected to raise its benchmark rate by 50 basis points on Thursday.

Latest News