Holding Breath Ahead of OPEC Release
Oil prices moved flat after a three-day rally. West Texas Intermediate (WTI) held around US$61 per barrel after rising 1.5% on Tuesday, while Brent closed above US$65. The market awaits Wednesday's monthly OPEC report and the International Energy Agency's (IEA) annual energy outlook for a picture of market balance through 2026.
On the price curve, the WTI prompt spread—the difference between the nearest contract and the next month—narrowed to 5 cents per barrel in backwardation. This narrowing signals expectations of looser supply conditions going forward, likely holding back the rally.
Throughout this year, oil prices have been pressured by concerns about a large surplus. OPEC+, including Russia, has begun restoring capacity, while non-OPEC producers have also increased output. The IEA had previously projected a potential record oversupply next year, and banks like Goldman Sachs warned of rising inventories.
At 8:11 a.m. Singapore time, WTI for December delivery was trading slightly at US$61.01 per barrel. For Brent, the January contract rose 1.7% to close at US$65.16 per barrel on Tuesday. Market focus is now on OPEC policy direction and global demand signals, which will shape the next price trend. (asd)
Source: Newsmaker.id
