Oil prices eased on Tuesday after rallying for two sessions, as investors turned cautious ahead of Sunday’s scheduled OPEC+ meeting when the producer group may discuss deepening supply cuts due to slowing global economic growth.
Brent crude futures was down 41 cents, or 0.5%, to $81.91 a barrel by 11:16 a.m. EST (1616 GMT). U.S. West Texas Intermediate crude futures fell by 44 cents, or 0.6%, to $77.39.
Both contracts had climbed about 2% on Monday after three OPEC+ sources told Reuters the group, the Organization of the Petroleum Exporting Countries (OPEC) and allied producers, was set to consider whether to make additional oil supply cuts when it meets on Nov. 26.
OPEC+ is likely to extend or even deepen oil supply cuts into next year, eight analysts have predicted.
“We see some scope for the group to do a deeper reduction, but we would anticipate that Saudi Arabia would seek additional barrels from other members to share the burden of the adjustment,” said RBC Capital analyst Helima Croft.
Investors took profits ahead of the OPEC+ meeting and the U.. Thanksgiving holiday on Thursday, which typically yields lower trading volumes in oil.
“Traders are covering before the holiday,” said Phil Flynn, an analyst at Price Futures Group. “The market is getting back on track.”
Short-term speculators also took profits on WTI after several indicators were overbought on technical charts, Singapore-based OANDA analyst Kelvin Wong said.
Market participants awaited industry data later on Tuesday on U.S. crude supplies. Analysts polled by Reuters expected inventory reports this week to show crude and gasoline stockpiles rose.
Oil has fallen about 16% since late September as crude output in the U.S., the world’s top producer, held at record highs, while the market was concerned about demand growth and economic slowdown.