Oil prices steady ahead of critical OPEC+ meeting

Oil prices stabilized after a recent decline as markets turn their attention to Thursday's OPEC+ meeting, where the alliance is expected to delay the return of additional crude to a market already grappling with oversupply concerns.

Brent crude traded above $72 per barrel after a nearly 2% drop on Wednesday, while West Texas Intermediate (WTI) crude slipped below $69. OPEC+ is reportedly close to agreeing on postponing supply increases to prevent a potential glut in 2025.

U.S. data released Wednesday provided mixed signals. While commercial oil inventories fell by over 5 million barrels—the largest weekly decline since August—domestic crude production surged to a record high, highlighting the strength of output from non-OPEC+ producers.

Currently, U.S. drilling platforms are pumping more than 13.5 million barrels per day, significantly outpacing Saudi Arabia’s production of 9 million barrels per day.

Crude prices have traded within a narrow range since mid-October as volatility eased. The market remains influenced by competing factors, including sluggish demand from China, the possibility of Donald Trump’s return to the U.S. presidency—which could lead to higher domestic oil production—and tougher sanctions on Iran and Venezuela.

“OPEC+ faces mounting challenges, particularly with the likelihood of increased U.S. oil output next year,” Yeap Jun Rong, market strategist at IG Asia in Singapore told Bloomberg. “Their goal of stabilizing prices is becoming more difficult. The worst-case scenario for prices would be OPEC+ deciding not to extend production cuts.”

As the OPEC+ meeting approaches, the oil market awaits clarity on the group’s next moves, with any shifts likely to reverberate across global energy markets.