"Crude oil prices staged a rebound today, with WTI climbing around 2% to just below USD 60 per barrel. The market found support after OPEC+'s weekend decision to reaffirm its production pause during the first quarter of 2026. The output hold could help reduce concerns about an oversupplied market to a certain extent. Geopolitical tensions also contributed to the market's strength."
"Fresh disruptions to the energy infrastructure in Eastern Europe affected supply expectations in addition to the rising tensions between the US and Venezuela. Together, these factors have nudged traders to re-price some of the geopolitical risk premium that had been unwound on hopes of a peace deal for Eastern Europe. However, today's strength is unfolding against a bearish structural backdrop."
WTI climbed about 2% to just below USD 60 per barrel after OPEC+ reaffirmed a production pause for the first quarter of 2026. The output hold eases some concerns about an oversupplied market. Fresh disruptions to energy infrastructure in Eastern Europe and rising tensions between the US and Venezuela tightened near-term supply expectations and raised geopolitical risk premiums. Traders have re-priced some of the geopolitical risk premium that had previously been unwound on hopes of a peace deal for Eastern Europe. Despite the rebound, oil fell in November and remains sharply lower year-on-year, with major agencies forecasting a sizable supply surplus into 2026 driven by strong non-OPEC output.
Read at London Business News | Londonlovesbusiness.com
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