Is Oil's Rise Just a Short-Term Breather?
Global oil prices rose slightly on Wednesday after hitting a one-month low in the previous session. Brent rose 0.43% to around US$62.75 per barrel, while WTI gained 0.41% to around US$58.19 per barrel. However, many analysts view this rise as more of a short-term technical pause, rather than the start of a strong uptrend.
Market analysts believe this movement is supported by signals of slightly tighter US inventories and short-covering, but underlying sentiment remains negative. The market is increasingly pricing in a potential oil oversupply in 2026, while there are no demand drivers strong enough to balance the market. Therefore, any price increases are seen as fragile and at risk of rapid further pressure.
From a geopolitical perspective, hopes for a Russia-Ukraine peace deal are also holding back price increases. Ukrainian President Volodymyr Zelenskiy told European leaders that he is ready to continue the US-backed peace framework, with only a few points of difference remaining. If a deal is reached and Western energy sanctions against Russia are eased, analysts predict WTI prices could fall to around US$55 per barrel. For now, the market is still awaiting further clarity, but the risks are tilted toward lower prices as peace talks progress.
Meanwhile, preliminary data from the American Petroleum Institute showed a decline in US crude oil inventories, while fuel supplies actually rose. Investors are also awaiting official data from the Energy Information Administration. Expectations of a Fed interest rate cut in December also provided some support for oil prices, as lower interest rates have the potential to boost economic growth and energy demand in the coming period. (asd)
Source: Newsmaker.id
