From Investing.com: 2024-12-02 06:31:00

Oil prices are facing pressure from weak global demand and rising non-OPEC supply. The upcoming OPEC+ meeting is crucial for potential production cuts. Saudi Arabia is expected to cut crude prices in January, adding tension to the market. Concerns about demand and supply are keeping prices under pressure.

The OPEC+ is struggling to unwind production cuts by 2025 due to sluggish global demand and increased non-OPEC supply. Despite efforts, oil prices are negative for the year. The US presidential election aftermath is adding uncertainty, with expectations of higher US oil production under a second Trump term.

The OPEC+ meeting on December 5 is critical amidst high interest rates and weak global economic activity. US oil production could increase under a second Trump term, threatening to flood the market. Discussions about delaying a planned production increase in January are ongoing, with the decision expected at this week’s meeting.

Saudi Arabia is likely to announce significant crude price cuts for Asian buyers in January, possibly influenced by the OPEC+ meeting outcome. A ceasefire between Israel and Lebanon has reduced geopolitical premium in oil prices, impacting last week’s drop. WTI prices are struggling to break key resistance levels, with technical traders eyeing potential downside targets.

Last week’s drop in oil prices was influenced by a ceasefire in the Middle East. WTI prices are facing resistance around $69-$70, with potential for a downside breakdown. ProPicks AI, Fair Value, and the Top Stock Screener are available at 60% off InvestingPro this Cyber Monday. However, any investment decision remains highly risky and at the discretion of the investor.



Read more at Investing.com: Crude Oil Bears Could Target $67 Support as Global Demand Weakens, US Supply Grows