Oil prices edged higher as Asian markets gained on optimism surrounding China’s economic recovery. Brent crude hovered near $72 a barrel, while West Texas Intermediate climbed above $68, after slipping 3% the previous week.
China’s Recovery in Focus
China’s factory activity expanded for the second consecutive month in November, signaling a tentative recovery for the world’s largest crude importer. This follows a series of stimulus measures introduced in late September.
OPEC+ Meeting Delayed
OPEC+ postponed its meeting on supply decisions by four days, fueling speculation about the group’s next moves. Analysts anticipate another delay in production increases, as the alliance seeks to balance market stability with maintaining its share of global supply.
Market Dynamics
Oil has traded within a narrow $6 range since mid-October, influenced by:
- Geopolitical tensions in the Middle East and Russia.
- Uncertainty about a potential second Trump presidency.
- China’s economic outlook.
Expert Insight
“Oil prices remain largely range-bound, with plenty of uncertainty heading into the OPEC+ meeting,” said Warren Patterson, head of commodities strategy at ING Groep NV.
Middle East Update
A truce between Israel and Hezbollah remains intact despite mutual accusations of cease-fire violations. Meanwhile, Iran has pledged support for Syria’s government after insurgents escalated fighting in Aleppo.