Crude oil prices remained close to the levels seen during the last few days. Markets could continue to consolidate while hopes of the US government reopening helped stabilize demand prospects.
Additionally, expectations of a pause in production increases from OPEC countries next year could help limit downside risks.
US sanctions on Russian oil majors could also continue to support prices as they could disrupt crude volumes and tighten supply to a certain extent.
A scale-back in Russian oil imports by Indian refiners as trade talks with the US advance could further constrain the market and support prices.
However, bearish sentiment could persist as oversupply concerns remain. OPEC+ confirmed it will proceed with a 137,000 barrel-per-day output increase in December, which could weigh on prices over the short term. At the same time, output levels among other major oil producers continued to grow and could fuel concerns about the supply glut.
In the meantime, prices could remain range-bound in the short term, while traders await key monthly and annual outlook reports from OPEC and the IEA for hints on future direction.
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