SINGAPORE: Oil prices edged up slightly on Tuesday but stayed within a tight trading range, as market participants awaited the results of an OPEC+ meeting scheduled for later this week.

Brent crude futures increased by 31 cents, or 0.4%, reaching $72.14 per barrel at 10:04 a.m. Saudi time, following a 1-cent decline in the previous session. Meanwhile, US West Texas Intermediate crude climbed 26 cents, or 0.4%, to $68.36, after gaining 10 cents on Monday.

Sources within the producer group indicated that the organization will likely extend its current round of output cuts until the end of the first quarter during its December 5 meeting.

"Considering the increased compliance with production cuts from Russia, Kazakhstan, and Iraq, the lower Brent price level, and hints in press reports, we anticipate an extension of OPEC+ production cuts until April," stated Goldman Sachs analysts in a recent note.

OPEC+, which comprises the Organization of the Petroleum Exporting Countries and its allies like Russia, has been aiming to phase out production cuts by the first quarter of 2025. However, the prospect of surplus supply has exerted downward pressure on prices. The group is responsible for approximately half of the world's oil production.

"I believe there's no alternative but to postpone it," commented Priyanka Sachdeva, a senior market analyst at Phillip Nova, noting that the delay might only be for a month or so due to significant pressure from member nations to increase output.

In the absence of bullish factors and subdued demand, Sachdeva anticipates oil prices to remain within a narrow range, with a tendency to decline.

The consumption outlook remains subdued, with China's crude imports expected to peak as early as next year as demand for transport fuels starts to wane for the world's largest crude importer, widening the gap between supply and demand, according to researchers and analysts.

Concerns that the US Federal Reserve might not reduce interest rates at its December meeting have also limited oil price gains, countering positive signals from China, where the purchasing managers' index reached a seven-month high in November.

Last week, oil prices on both sides of the Atlantic dropped by more than 3%.

Federal Reserve Governor Christopher Waller, whose views often serve as a barometer for US monetary policy, expressed his inclination to support another rate cut this month. However, Atlanta Federal Reserve President Raphael Bostic maintained that the Fed still needs to assess upcoming job data.

In the Middle East, the US-brokered ceasefire between Israel and the militant group Hezbollah showed signs of strain, with nine people killed in strikes on two southern Lebanese towns shortly after Hezbollah launched missiles at an Israeli military position in the disputed Shebaa Farms area on Monday.

A preliminary Reuters poll on Monday suggested that US crude oil stockpiles likely decreased last week, while gasoline and distillate inventories probably rose. The American Petroleum Institute and the Energy Information Administration are set to release their weekly data on Tuesday and Wednesday, respectively.

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