WTI Holds at $68, Market Focuses on OPEC+ Meeting

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The U.S. benchmark West Texas Intermediate (WTI) crude oil futures were trading around $68.85 on Friday.


WTI prices held steady as the escalation in the Russia-Ukraine conflict offset expectations of a less aggressive rate cut from the Federal Reserve (Fed).


Oil traders will be closely monitoring the developments in the Russia-Ukraine conflict for signs of escalation that could raise energy supply concerns, particularly winter gas flows to Central and Eastern Europe.


On Thursday, Russian President Vladimir Putin said that if Ukraine uses nuclear weapons in this conflict, Russia will not hesitate to use all means of destruction.


U.S. economic data on Wednesday showed that progress in reducing inflation appears to have stalled in recent months and that could reduce expectations for the Fed to cut interest rates in 2025.


However, they expect the Fed to leave rates unchanged.


A slower-than-expected rate cut would keep borrowing costs high and could slow economic activity and lower oil demand.


The Organization of the Petroleum Exporting Countries and its allies (OPEC+) postponed its December meeting, sparking speculation about a delay in production increases and supply adjustments.


OPEC+, which accounts for about half of the world's oil production, was scheduled to meet on December 5.

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