"Crude oil prices were relatively stable at the start of the week, with WTI futures hovering near the USD 61 per barrel level. Traders could remain cautious amid concerns about a supply glut and following OPEC's decision. The organization agreed to pause its planned production increases for the first quarter of 2026 and proceeded with a small 137,000 bpd hike for December. The decision could relieve the market from further downside pressure as traders contend with risks of oversupply."
"At the same time, the market could find support in continuing geopolitical risks. Recent US sanctions on Russian oil giants Rosneft and Lukoil, combined with strikes on energy infrastructure in Eastern Europe, could add upward pressure. However, the market remains pressured by rising global inventories, record-high US output near 13.8 million barrels per day, and weakening demand signals, particularly from China's contracting manufacturing PMI. With projections of a significant global surplus emerging in early 2026, the market could remain exposed to the downside and sensitive to OPEC+'s policy decisions"
Crude oil began the week around USD 61 per barrel as market participants balanced supply and demand signals. OPEC agreed to pause planned production increases for Q1 2026 and implemented a modest 137,000 bpd December hike, potentially easing immediate downside. Geopolitical developments, including US sanctions on Rosneft and Lukoil and strikes on energy infrastructure in Eastern Europe, could provide upward support. Offsetting forces include rising global inventories, record US output near 13.8 million bpd, and weakening demand indicators such as China's contracting manufacturing PMI. A projected global surplus in early 2026 keeps the market exposed to downside risk and sensitive to OPEC+ policy.
Read at London Business News | Londonlovesbusiness.com
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