Geoffrey Smith 

Investing.com — Crude oil prices edged lower in depressed trade on Thursday as the market used the U.S. Thanksgiving Day holiday to take a breather ahead of next week’s key OPEC+ meeting.

At 5:10 am ET (1010 GMT), the futures had fallen 0.7% to $77.86/barrel, while the benchmark international oil price was 0.6% down at $81.79/barrel.   

The OPEC+ group, which brings together the world’s largest exporters, is due to meet in a week’s time, on December 2^http://nd., under pressure to respond to a coordinated signal from the world’s biggest buyers that prices are too high. 

The speculation surrounding a possible joint release of reserve had driven prices to a 7-week low prior Tuesday’s announcement. While prices have jumped by over $2 since Tuesday’s announcement they are still 8% away from their October highs.

So far, the group hasn’t indicated any shift in its output policy, but the Organization of Petroleum Exporting Countries, which had already warned of the global market tipping back into surplus early next year, noted on Thursday that the planned release of strategic reserves by the U.S. and others would equate to a global supply increase of around 1 million barrels a day.

OPEC+ pledged to revive the production it had cut since the outbreak in monthly increments equal to 400,000 barrels per day. Due to problems in production, OPEC+ has not been able to keep its commitment. Some see this pledge now as being subject to revision.

“The alliance…may opt to reduce future production hikes when they meet,” said Saxo Bank strategist Ole Hansen in a morning note to clients.

Between January and April, the United States will hold periodic auctions for barrels drawn from its Strategic Petroleum Reserve.

“The total stock release numbers could exceed 60-70 million barrels based on what we know now, which warrants attention on the drawdown rate of such a release,” said Rystad Energy oil market analyst Bjornar Tonhaugen in e-mailed comments.

The U.S. government released weekly data on Wednesday showing that crude stock increased by 1 million barrels last week. However, inventories of other fuels continued to drop, suggesting that there is still strong demand from airline drivers and chemical firms. 

Particularly, airlines have increased their capacity to handle the pent up demand on transatlantic route routes after lifting the restrictions on foreign visitors. Americans were able to travel home from Thanksgiving in Europe for the first-time in over two years.

U.S. gasoline prices RBOB futures fell 0.7% to $2.3035/gallon.  This Thanksgiving, the U.S. government admitted that retail prices will be at their highest point in nine year.