Oil Prices Drop as OPEC Plans Increased Output Amid US-China Trade and Russia Sanctions

Oil prices have declined slightly, extending losses as OPEC+ nations consider another modest increase in output for December, driven by Saudi Arabia's push to reclaim market share. Brent crude futures fell to around $65.58 per barrel and US West Texas Intermediate to about $61.22 per barrel, despite optimism about a potential US-China trade deal framework that could avoid extensive tariffs and ease trade tensions. US sanctions on Russia's major oil companies, including Rosneft and Lukoil, aim to restrict Russia's oil exports and finance of the war in Ukraine, which has contributed to market volatility. However, traders remain cautious about the actual impact of these sanctions and the trade deal on global oil supplies, amid concerns about lackluster demand and the risk of oversupply due to increased OPEC+ production. The Trump administration seeks to balance pressure on Russia's oil sector without triggering a sudden supply shock that could spike prices, while hopes persist for a recovery in US oil consumption to support prices. Overall, the market is navigating competing influences from increased output plans, geopolitical sanctions, and evolving trade negotiations between the US and China.