OPEC+ Plans December Oil Output Increase Amid Global Supply Concerns

Oil prices have declined due to expectations that OPEC+ plans to modestly increase oil production in December, which adds to an already strong supply environment with US production reaching record levels. Despite optimism about progress in US-China trade talks and concerns over US sanctions on Russian oil firms like Rosneft and Lukoil, the market remains cautious as the potential output hike by OPEC+ may dampen price gains. Analysts note that US sanctions on Russia might be less severe than initially expected because Russia conducts most oil transactions in rubles or other friendly currencies, and OPEC's willingness to raise production further supports this outlook. Sanctions and geopolitical tensions, including Ukraine's threats against Russian refineries, pose risks to middle distillate supply, but the overall supply surplus keeps downward pressure on prices. Brent crude and WTI futures have both edged lower, reflecting the balance between supply increases and geopolitical concerns. These dynamics maintain an uneasy market equilibrium with prices sensitive to shifts in production and international relations.