Oil Prices Slid Sideways at Low Levels
Oil prices held weak after a sharp decline, amid cautious optimism that Middle East tensions were easing and global supply was likely to be tight. Brent traded near $65/barrel after falling 1.6% the previous day, while WTI hovered just below $62. Israel agreed to a framework deal that included the release of hostages by Hamas in exchange for the release of prisoners—a crucial step toward peace in Gaza and a reduction in the “war premium” on prices.
As risk sentiment receded, the market also eyed the prospect of a surplus heading into the end of the year. OPEC+ agreed to raise production quotas again starting in November. The increase of around 137,000 bpd was smaller than initially feared—which had sparked a relief rally earlier in the week—but still added to supply pressure, along with additional production from the Americas, including the US.
On the policy front, the US imposed new sanctions on more than 50 individuals, companies, and vessels involved in Iran's energy trade—including a key crude import terminal and a privately owned refinery in China. This series of actions has added uncertainty to Iranian oil flows, but has not yet changed the market's bearish outlook for near-term prices.
By early morning in Singapore, December Brent was trading nearly flat at around $65.31/barrel, and November WTI was stable at $61.63/barrel. Market participants await clarity on the implementation of the Gaza peace plan, details of OPEC+ production compliance, and developments on US sanctions against Iran to determine the next direction.
Key points:
Gaza peace potential → "war premium" fades, pressuring prices.
OPEC+ increases quota (smaller than expected), but continues to increase supply.
US tightens sanctions on Iranian energy; supply impact still being evaluated.
Short-term bias is bearish with two-way risks from geopolitics and production compliance. (asd)
Source: Newsmaker.id
