Oil Sees Weekly Prices Surge Ahead of OPEC+ Output Decision
Oil prices surged week on week, lifted by optimism surrounding Russia-Ukraine peace efforts and growing expectations of a US rate cut, even as stronger supply signals and a surprise US stock build kept gains in check. The price swung ahead of OPEC+ output decision at the weekend.
International benchmark Brent crude traded at $62.92 per barrel, up 1.6% from last Friday’s close of $61.93. US benchmark West Texas Intermediate (WTI) was at $58.96 per barrel, rising around 1.8% compared with $57.93 last week.
Oil prices started the week largely steady as markets weighed prospects of a potential Russia-Ukraine peace deal and the likelihood of eased US sanctions on Russian oil exports.
Following peace plan talks in Geneva, Switzerland, the US announced that the parties had prepared an “updated and revised draft peace framework.” Earlier, Kyiv had received a 28-article peace proposal drawn up under the Trump administration.
Goldman Sachs projected a daily global surplus of around 2 million barrels and estimated Brent could average $56 in 2026, citing increased output from delayed post-pandemic investments and the expiration of OPEC+ production cuts.
Prices gained midweek amid expectations of a Fed rate cut, supported by a softening US labor market. However, oil fell on Thursday after US commercial crude inventories rose by 2.8 million barrels last week to 426.9 million, above forecasts.
Strategic petroleum reserves increased by 500,000 barrels to 411.4 million, while gasoline stocks climbed 2.5 million barrels to 209.9 million, signalling soft domestic demand.
Prices recovered slightly on Friday ahead of an OPEC+ meeting, where eight member states — Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman — are scheduled to review production strategy.
The group agreed on November 2 to raise output by 137,000 barrels per day in December and pause further increases in the first quarter of 2026. Banks Reduce Interest in CBN Placement as SDF Rate Falls
