U.S. Data And OPEC Uncertainty Discourage Market Bulls

Oil prices remained unchanged on Thursday as disquieting U.S. manufacturing statistics and uncertainty over OPEC+'s future course of action restrained a market that had climbed roughly three times as much earlier in the day in pursuit of Wednesday's spike.

According to a Reuters story, European Union members have agreed informally to a price cap of $60 per barrel for seaborne Russian oil, which depressed oil bulls. The proposed cap, with an adjustment mechanism to keep it at 5% below the market price of oil, is still higher than many had anticipated, so lessening the probability of Russian retaliation through reduced production or exports.

West Texas Intermediate, or WTI, crude for January delivery traded on the New York Mercantile Exchange closed the day at $81.22 a barrel, an increase of 67 cents, or 0.8%. WTI soared over $2.80 to $83.33 at the session's peak as oil bulls sought to duplicate Wednesday's 3% increase. Following a 19% decrease over the previous three weeks, the benchmark for U.S. crude has increased by almost 7% in the past week.

Brent crude for February trading in London ended the day 9 cents down at $86.88 a barrel. Despite Thursday's dip, the worldwide benchmark for crude oil is up 4% for the week, following a 16% decline over the previous three weeks.

Oil and other risk assets, including Wall Street shares, were hindered by the ISM manufacturing index for the United States slipping below the 50-point level for the first time in over 212 years.

Uncertainty over OPEC+'s activities at this week's meeting lowered oil market risk.

OPEC+, which consists of the Saudi-led 13-nation Organization of the Petroleum Exporting Countries (OPEC) and 10 oil producing allies led by Russia, has already reached an agreement to cut production by 2 million barrels per day until the end of next year in an effort to boost crude prices, which have fallen by about 40% from their March highs.

On Monday, Saudi Energy Minister Abdulaziz bin Salman cautioned that when the alliance meets the following weekend, it is possible that more cuts will be enacted.

Other oil producing coalition officials have informed the media informally that OPEC+ would likely maintain output levels at its meeting on Sunday.