Oil Slumps, Gaza Peace & Surplus Loom
Oil prices held weak after a sharp decline, amid cautious optimism that Middle East tensions are easing and global supply is likely to loosen. Brent traded near $65/barrel after falling 1.6% on Thursday, while WTI hovered below $62. Israel agreed to a framework deal that includes the release of hostages by Hamas in exchange for the release of prisoners, potentially reducing the "war premium" on prices.
At the same time, the market faces the risk of a surplus heading into the end of the year. OPEC+ increased production quotas again starting in November by around 137,000 bpd—less than expected—which triggered a relief rally at the start of the week, but was not enough to change the view that supply will remain abundant.
The general mood remains bearish, driven by additional supply from OPEC+ and producers in the Americas, including the US. However, some analysts emphasize that supply-based surpluses rarely come suddenly, so the market usually prices in their impact beforehand.
On the policy front, the US imposed sanctions on more than 50 individuals, companies, and vessels involved in Iran's energy trade, including a key oil import terminal and a private refinery in China. By midday in Singapore, December Brent crude was down about 0.4% at $64.93/barrel, while November WTI crude was down 0.4% at $61.28/barrel. (asd)
Source: Newsmaker.id
