Oil prices flat as Brent trades below $87

Oil prices held ground today, Dec. 1, after recording a monthly loss in November, as uncertainty lingered ahead of the OPEC+ meeting next week.

Brent crude for February delivery settled at $86.87 per barrel at 9:12 am Makkah time, after surging 2.9% at the settlement of yesterday’s trading.

NYMEX crude contracts for January delivery kept flat at $80.48 a barrel.

"The market remains uncertain about OPEC's decision, with some expecting a cut while others suggest a rollover of the current deal is more likely," ANZ research analysts said in a note today. The market is also bracing itself for the impact of European sanctions on Russian oil, they added.

OPEC and its allies, including Russia, are scheduled to meet on Dec. 4.

Sources told Reuters, on Nov. 30, that the decision to hold the meeting practically indicates a minor possibility of a policy change, as the group assesses the impact of the looming Russian oil price cap on the market.

On the other hand, market optimism grew after the Chinese cities of Guangzhou and Chongqing announced the easing of COVID-19 curbs on Nov. 30. This came a day after protestors in southern Guangzhou clashed with the police in a crackdown against the most severe restrictions as lockdown anger grows.