Crude oil prices continued their downward drift today, marking a third straight session of losses.
WTI traded near USD 60 as concerns mounted over a supply glut.
Traders could focus on Sundayโs OPEC+ meeting, where the group could lean toward a modest output increase for December of around 137 kb/d. A larger increase could weigh on prices further and exacerbate the marketโs decline.
Offsetting factors have failed to continue propping up the market. Fresh US sanctions on Rosneft and Lukoil jolted prices last week, but the impact was limited in time as the market leans on ample spare capacity and comfortable supply buffers.
Positive developments in US-China trade, including talks on a “framework” ahead of a leaders’ summit this week, are providing only a mild tailwind. The market is now looking to US inventory data for its next catalyst, with the API and EIA reports due shortly. The latter could affect the marketโs direction and could fuel some volatility.
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