Crude oil prices have shown signs of relative stabilisation this week after a bearish start, with West Texas Intermediate (WTI) futures holding around US$68.5 per barrel.
The U.S. Energy Information Administration (EIA) reported a drop in U.S. crude oil inventories by 1.8 million barrels for the week ending November 22, exceeding market expectations and providing temporary support to prices.
Despite this positive data, the oil market remains under pressure from weak global demand and persistent abundant supply.
The temporary truce between Israel and Hezbollah has eased tensions in the Middle East, but recent statements from Israeli Prime Minister Benjamin Netanyahu have cast doubt on the agreement’s durability.
The upcoming OPEC+ meeting on Sunday is crucial for determining the short-term direction of oil prices.
Cartel members and their allies will discuss the possibility of delaying a planned production increase to address oversupply concerns in a weakened demand environment.
Market participants will closely monitor the decisions made at this meeting, as they could provide clearer direction for prices in the coming weeks.
Adding to the market’s complexity, the Canadian oil industry has expressed concerns about potential tariffs proposed by the U.S. President-elect, warning that such policies could increase energy costs for U.S. consumers.
Quasar Elizundia, Expert Research Strategist at Pepperstone, summarises the situation: “The oil market faces apparent but fragile stability, shaped by opposing factors such as inventory impacts, geopolitical tensions, and key OPEC+ decisions.”
As the energy landscape continues to evolve, investors and industry stakeholders remain in a state of uncertainty, awaiting clearer signals from both market fundamentals and policy decisions.
