"Traders could remain cautious due to the uncertainty around geopolitical developments in Eastern Europe and their impact on supply levels. In this regard, the diplomatic push for a peace deal could lead to the sanctions on Russian oil firms being potentially lifted, which would flood the market with previously constrained Russian barrels. Higher volume availability could weigh on a market that is already under pressure from a bearish narrative."
"Forecasts continue to point to a supply glut in the coming year. Additionally, yesterday's data from the EIA confirmed a surprise inventory build of 2.77 million barrels, defying consensus expectations for a draw. While some uncertainty looms ahead of the upcoming OPEC+ meeting this weekend, the group is expected to pause Q1 2026 output hikes, which could help reduce the downside risks for oil prices."
Crude oil prices were relatively stable and may consolidate near multi-week lows as traders remain cautious. Geopolitical uncertainty in Eastern Europe raises concerns about future supply levels. A diplomatic push for a peace deal could lead to lifting sanctions on Russian oil firms, returning previously constrained Russian barrels to the market. Increased Russian volumes could add to existing bearish pressure. Forecasts indicate a supply glut in the coming year. U.S. EIA data showed a surprise inventory build of 2.77 million barrels, contrary to expectations. The upcoming OPEC+ meeting is uncertain, but a likely pause in Q1 2026 output hikes could limit downside risks.
Read at London Business News | Londonlovesbusiness.com
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