WTI crude oil futures extended their recent gains, rising above $70 per barrel on Friday, on track for their best week in two months.
Oil on track for best week in two months
The increase was fueled by a higher geopolitical risk premium amid intensifying tensions between Russia and Ukraine. Earlier in the week, Ukraine launched its second Western-supplied missile into Russia, while Kyiv’s air force reported that Russia fired its first intercontinental ballistic missile at Ukraine on Thursday in retaliation. Meanwhile, market attention is turning to the OPEC+ meeting on December 1st, with speculation that planned output increases may be delayed once again.
OPEC+ decision
The producer group had initially planned gradual production hikes for 2024 and 2025, beginning last October, but slowing global demand has pushed back those plans. This comes as China, a key importer, continues to face weak economic growth and low demand.
