Crude Oil Prices Edge Higher Ahead of OPEC+ Meeting
Crude oil prices closed higher on Friday in the global commodity ahead of the Organisation of Petroleum Exporting Countries (OPEC) and allies members meeting on Sunday.
The crude oil prices has been stemmed by expectation of supply glut and fluctuating demand with both side peppered by geopolitical risks linked to the Russia-Ukraine and rising tensions involving Iran, Saudi Arabia and Venezuela
Brent crude traded at $60.74 per barrel, up 0.5% from last Friday’s close of $60.43. The US benchmark West Texas Intermediate (WTI) rose 0.7% to $57.29 per barrel, compared with $56.86 a week earlier.
Prices advanced early in the week after US President Donald Trump said “significant progress” had been made toward ending the Russia-Ukraine war following talks with Ukrainian President Volodymyr Zelenskyy.
Zelenskyy said around 90% of a 20-point peace plan had been agreed, including US-Ukraine security guarantees and military arrangements, while negotiations on a broader prosperity framework continue.
Uncertainty over the durability of the talks supported prices, with Moscow warning of retaliation after alleging a drone attack on President Vladimir Putin’s residence, a claim denied by Ukraine.
Rising tensions in the Middle East also fueled supply concerns. Saudi air operations against Yemen and remarks by Iranian President Masoud Pezeshkian that Iran is in a state of “comprehensive war” with the US, Israel and Europe raised risks to regional oil flows.
Expectations of further US Federal Reserve rate cuts also supported prices, after the Fed lowered rates by a cumulative 75 basis points this year, with markets anticipating additional easing in 2026.
Midweek gains were capped by a stronger US dollar and persistent oversupply concerns, including OPEC+ plans to gradually unwind production cuts, robust non-OPEC output and weaker global demand growth.
Attention has shifted toward Jan. 4 OPEC+ meeting, where producers are expected to review market conditions and set output policy for the early part of 2026. The group is widely expected to stick to its decision to pause further supply increases.
OPEC+, comprising Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman, previously agreed to suspend planned output hikes for early 2026 to support prices after sharp losses in global crude benchmarks last year.
Geopolitical developments offered limited support. Trump announced new sanctions targeting certain companies operating in Hong Kong and mainland China, tightening pressure on Venezuela’s oil exports.
The measures target firms and vessels accused of helping Caracas bypass existing restrictions, raising concerns over possible disruptions to Venezuelan crude shipments.
Oil prices fell sharply last year amid ample supply, as OPEC+ eased production cuts and non-OPEC producers kept output high, outweighing supply risks linked to geopolitical tensions.
