Crude oil futures stabilized this week as the market anticipates the outcome of the OPEC+ meeting this weekend.
Meanwhile, the ceasefire agreement between Israel and Hezbollah has reduced immediate concerns over potential supply disruptions from the Middle East, further weighing on prices.
Adding to the bearish tone is the slowing fuel demand growth in major economies like the United States and China. This combination of factors could point to a near-term bearish outlook for global crude oil prices.
Attention is now turning to the OPEC+ meeting, where discussions are expected to centre around delaying planned production increases originally set to begin in January. Whilst market consensus leans toward a deferral, the duration of any delay remains a critical factor. A longer postponement could support the market over the medium-term by reinforcing supply constraints.
The geopolitical backdrop also adds complexity, with the potential risks to Iranian supply in case of sanctions or breach in the cease-fire agreement. Against this backdrop, trading activity remains subdued amid the U.S. Thanksgiving holiday, keeping oil prices largely range-bound.
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