Oil Steady After Progress on OPEC+ Deal and Iran Sanctions
Oil was broadly steady after Tuesday’s surge, with OPEC+ making progress on a deal to further delay the restoration of shuttered supply.
Brent crude traded near $74, paring gains from earlier in the day, while West Texas Intermediate was close to $70. The producer group is edging closer to an agreement to push back a plan to revive output by a further three months, delegates said. Meanwhile, the US has sanctioned 35 entities and ships that it said play a critical role in the shadow fleet transporting illicit Iranian oil to foreign markets.
Despite a recent rally, crude has been locked in a band of roughly $6 since the middle of October, buffeted by competing drivers including the imminent Donald Trump presidency, geopolitical tensions in the Middle East and Ukraine and a lackluster demand outlook from top importer China. Amid widespread concern the global market faces a glut next year, OPEC+ is due to finalize supply plans at an online meeting on Thursday.
Brent for February settlement was 0.4% higher at $73.88 a barrel at 1:38 p.m. in London. WTI for January delivery added 0.3% to $70.18 a barrel.
Source: Bloomberg
