Oil held near $40 a barrel in New York as the IEA cautioned on a fragile outlook and hopes for more U.S. fiscal stimulus faded. OPEC+ plans to boost production in January will leave the market in a precarious balance, and potentially unable to handle higher supply from elsewhere or a drop in demand, the International Energy Agency said. The warning came amid renewed roadblocks for U.S. stimulus. Still, crude was steady as the dollar declined.
Other bright spots are also emerging. A Chinese mega-refiner is snapping up barrels of Middle Eastern crude to feed trial runs of its expanded plant. At the same time, India’s refiners have cranked up processing to meet higher demand during a festive period.
PRICES
West Texas Intermediate for November delivery rose 0.2% to $40.27 a barrel at 9:49 a.m. London time
Brent for December settlement gained 0.2%, to $42.55
