Oil prices fell amid mixed market signals on Tuesday as traders await the outcome of an OPEC+ meeting this week.
Brent oil futures lost 9 cents, or 0.13 percent, to $71.74 a barrel by 0205 GMT. U.S. West Texas Intermediate crude lost 14 cents, or 0.21%, to $67.96.
“Investors are on hold ahead of the OPEC+ meeting,” ANZ analysts said in a note.
Producer group sources say it will extend its latest round of production cuts until the end of the first quarter at its Dec. 5 meeting. OPEC+, which brings together the Organization of the Petroleum Exporting Countries and allies such as Russia, aims to end cuts in the first quarter of 2025, but prospects of oversupply have weighed on prices.
OPEC+ pumps about half of the world's oil.
According to researchers and analysts, China's oil demand is expected to peak as early as next year, which will only widen the gap between supply and demand.
Saudi Arabia is expected to cut crude prices for Asian buyers to their lowest level in at least four years, traders say.
Fears that the US Federal Reserve will not cut rates at its December meeting also weighed on oil prices, offsetting some positive signals from China, where the purchasing managers index hit its highest level in seven months in November.
Oil prices on both sides of the Atlantic fell more than 3% last week.
Federal Reserve Governor Christopher Waller, whose views are often a bellwether for U.S. monetary policy, said Monday he was inclined to support another rate cut this month, but Federal Reserve Chairman of Atlanta, Raphael Bostic, maintained that the Fed still had to take into account upcoming employment data.
In the Middle East, the US-brokered ceasefire between Israel and the militant group Hezbollah continued to be troubled: nine people were killed in strikes on two towns in southern Lebanon, shortly after Hezbollah fired missiles at an Israeli military position in the disputed Shebaa Farms area on Monday.
