Oil Prices Remain Stable Amid OPEC+ Uncertainty
Oil prices edged higher in thin trading during the US Thanksgiving holiday. Global benchmark Brent hovered near $73 per barrel, reflecting market caution as traders await the delayed OPEC+ meeting. Initially set for Sunday, the meeting has been postponed to December 5, as the group evaluates delaying a production increase to prevent a potential surplus in 2025.
The oil market has remained in a tight range since mid-October, with prices influenced by geopolitical risks in the Middle East and Ukraine, Donald Trump’s election victory, and forecasts of oversupply. Reduced trading volumes during the holiday season further subdued price action. On Wednesday, fewer than 500,000 WTI contracts were traded, down nearly 40% compared to the year-to-date average.
US Crude Inventories Snap Gains as OPEC+ Awaits Decisions
US crude inventories dropped by 1.8 million barrels last week, breaking a three-week streak of gains, according to Energy Information Administration data. This decline offers slight relief to the market, as OPEC+ continues deliberations on supply adjustments. Industry experts suggest that absent major geopolitical developments, oil prices are likely to remain subdued ahead of the rescheduled OPEC+ ministerial meeting.
“Without geopolitical surprises, price movement will stay muted, especially with the delay in the OPEC+ discussions,” said Harry Tchilinguirian of Onyx Capital Group. Market participants now await the December 5 meeting to gauge how OPEC+ will address supply and demand dynamics heading into 2025.
Geopolitical Risks and Market Volatility Shape Oil’s Outlook
Oil markets continue to navigate a complex landscape shaped by geopolitical tensions in the Middle East and Ukraine, alongside broader economic uncertainties. While these factors create intermittent price fluctuations, traders are also factoring in the potential long-term impact of shifting energy policies and global demand trends. With OPEC+ deliberations ongoing, the balance between production cuts and future demand forecasts remains a critical driver of oil’s performance in the coming months.
Reduced Trading Volumes Highlight Holiday Impact on Oil Markets
The US Thanksgiving holiday significantly dampened oil trading activity, with WTI volumes dropping nearly 40% below the year-to-date average. This seasonal slowdown has left the market more sensitive to news from OPEC+ and crude inventory data. Analysts note that thinner trading can amplify volatility in the days leading up to critical decisions, adding to the uncertainty as traders await the rescheduled OPEC+ meeting.