Oil drops more than 1% over supply concerns

Oil drilling rigs

Oil edged lower today, Nov. 23, as investors digested US inventory data and as the OPEC+ postponed its ministerial meeting on oil policy to Nov. 30.

International benchmark Brent crude was trading down 1.22% at $80.96 a barrel, at 09:02 am Makkah time. West Texas Intermediate (WTI) crude fell 1.08% to $76.27 a barrel.

Latest data from the US Energy Information Administration showed that the country’s oil reserves rose by 8.7 million barrels last week, compared to the expectations of an increase by 900,000 barrels.

Meanwhile, Baker Hughes reported that the number of oil exploration rigs in the US was unchanged at 500.

OPEC+ members were struggling to agree on output levels and hence possible reductions ahead of the meeting originally set for Nov. 26, Reuters reported, citing sources.

Three OPEC+ sources, however, said this was linked to African countries, which are smaller producers in the group, the report noted.