Oil flat as traders weigh OPEC+ talks and ceasefire deal

WTI crude oil futures remained below $69 per barrel on Wednesday as traders evaluated signs of a potential delay in OPEC+ output plans and a reduction in geopolitical risks following the Israel-Hezbollah ceasefire.

Oil flat as traders weigh OPEC+ talks and ceasefire deal

Markets are closely monitoring the OPEC+ meeting scheduled for December 1, with reports indicating that the group may postpone its planned production increase for January by several months, citing concerns over a potential supply glut. Meanwhile, tensions in the Middle East eased after Israel and Hezbollah reached a 60-day ceasefire agreement through US-mediated talks.

Tensions in the Middle East ease

However, both sides resumed hostilities shortly after President Biden's announcement, highlighting the difficulty of achieving a lasting peace. On the demand side, API data showed a 5.9 million barrel drop in US crude oil inventories last week, the largest decline since August, contradicting expectations of a modest 0.25 million barrel increase.