OPEC+’s decision to halt production increases in the first quarter once again confirmed accelerated oil prices upward. While Brent and WTI turned upward, the uncertainty created after Trump’s Venezuela statements and geopolitical risks increased unease in the market. A possible Russia-Ukraine ceasefire could affect the supply side.
Oil prices moved upward after OPEC+ once again confirmed its decision to suspend production increases in the first quarter of the year.
Brent oil was moving around $63 per barrel at 09:04 in the morning session on the first trading day of the week. US-type WTI traded around $59.
The producer alliance led by Saudi Arabia said after talks on Sunday that the three-month pause announced last month would continue. OPEC+ once again stated that the decision reflects weaker seasonal demand dynamics.
Geopolitical risks kept prices high
Oil prices had declined for the fourth consecutive month in November due to expectations of a growing supply surplus. The International Energy Agency (IEA) predicts a record supply surplus towards 2026. However, geopolitical risks in the Middle East and different regions provided support to prices at times throughout the year.
Trump accelerated the pressure
Last Saturday, US President Trump further increased pressure on the country by warning airlines about the possibility of Venezuelan airspace being closed. However, on Sunday he somewhat walked back these statements. Despite this, the increased US military presence in the region continues to create pressure on the markets.
