Oil closed lower amid volatile trading with the postponement of the OPEC+ meeting

Oil prices fell by about one percent on Wednesday in a volatile session, with the OPEC+ alliance suddenly postponed a meeting to determine production policy that was scheduled to be held next Sunday, raising questions about the future path of crude production cuts.

Brent crude futures fell 49 cents to $81.96 per barrel at settlement, after falling more than four percent to $78.41 earlier in the session. US West Texas Intermediate crude futures also fell by 67 cents to settle at $77.10, after falling by more than five percent to $73.79 earlier in the day.

The Organization of the Petroleum Exporting Countries (OPEC) said in a statement on Wednesday that OPEC+ postponed its ministerial meeting to November 30 instead of November 26, in a surprising development without giving reasons.

Prices rebounded after news that the dispute concerned African countries, which are among the small producers in the group, and not major oil exporters.

Some traders also pointed to a decline in liquidity ahead of the Thanksgiving holiday in the United States.

The OPEC+ meeting, which includes, in addition to Saudi Arabia and Russia, allies and other OPEC members, was expected to discuss further changes to an agreement that already limits supplies until 2024, according to analysts and sources in OPEC+.

Earlier on Wednesday, Bloomberg News reported that the OPEC+ meeting could be postponed for an indefinite period, after Saudi Arabia expressed its dissatisfaction with the production numbers of other members.

Analysts expected before the meeting was postponed that the OPEC+ alliance was likely to extend or even increase oil supply cuts next year.

Both benchmarks fell for four consecutive weeks, with Brent crude falling from about $98 in late September, under the weight of increased supplies, concerns about demand and a possible economic slowdown.

Both crude oil rose about 2 percent after three OPEC+ sources told Reuters that the alliance, which includes OPEC and allied producers, will consider additional cuts in oil supplies when it meets on November 26.