Oil prices remained stable as traders awaited further information on OPEC+’s production plans following a four-day delay in a key virtual meeting. Brent crude hovered around $73 per barrel, while West Texas Intermediate was close to $69. The producer group is scheduled to discuss the possibility of increasing supplies, which could potentially lead to an oversupply in the market, during an online meeting on December 5. Talks have already begun on postponing this decision.
Crude oil has been trading within a narrow range since mid-October, experiencing alternating weekly gains and losses. The market has been influenced by geopolitical tensions in the Middle East, fluctuating demand from China, and uncertainties surrounding the impact of incoming US President Donald Trump’s policies on the oil supply from Russia and Iran.
Despite a cease-fire between Israel and Iran-backed Hezbollah easing concerns about supply disruptions in the region, tensions are escalating in Ukraine. Russian President Vladimir Putin has issued warnings about potential strikes on key locations in Kyiv using new ballistic missiles. Trading volumes have been lower this week due to the Thanksgiving holiday in the US, with WTI contracts changing hands at about half the average weekly volume over the past year.
Overall, the crude oil market remains uncertain due to various factors such as weather conditions, demand fluctuations, and geopolitical developments. The possibility of OPEC+ reversing its voluntary production cuts is still in question. Brent futures are on track for a weekly loss of nearly 3%, reflecting the ongoing uncertainties in the market.
As traders continue to monitor the situation, the oil market is likely to see further fluctuations in the coming days. Stay tuned for updates on OPEC+’s production decisions and their potential impact on oil prices.
