At 11:54 GMT, Light Crude Oil Futures are trading $60.63, down $0.35 or -0.57%.
OPEC+ Output Decision Overshadowed by Demand Concerns
Oil prices remained largely unchanged despite OPEC+ announcing plans to pause output increases in early 2025. The coalition confirmed a modest 137,000 bpd hike for December but signaled a halt to further additions in Q1.
This decision underscores concern about oversupply heading into the new year, especially as prices fell over 2% in October, marking the third straight monthly decline and touching five-month lows on October 20.
ING’s Warren Patterson noted that the move reflects growing acknowledgment of a significant surplus in early 2025. However, he warned that uncertainty remains over the impact of U.S. sanctions on Russian oil flows, which could skew the supply balance.
Geopolitical Risks Countered by Surging U.S. Supply
Despite persistent geopolitical tensions—including a Ukrainian drone attack on Russia’s Tuapse oil port over the weekend—oil markets are showing limited bullish response. The attack reportedly damaged a ship and caused a fire, adding to supply-side instability from the region.
However, rising U.S. production continues to offset geopolitical risk. According to the Energy Information Administration, U.S. crude output hit a record 13.8 million bpd in August, reinforcing a well-supplied market narrative.
