Oil prices climbed as global market sentiment improved amid hopes of reaching an agreement to end the U.S. government shutdown. Traders are also anticipating a busy week of market reports that could provide further indicators regarding potential global supply surpluses.
اضافة اعلان
Brent crude approached $64 per barrel after two consecutive weeks of declines, while West Texas Intermediate (WTI) surpassed $60 per barrel. Investor optimism over ending the longest government shutdown in U.S. history boosted stock markets and most commodities.
The Organization of the Petroleum Exporting Countries (OPEC) is set to release its monthly market analysis report on Wednesday, coinciding with the International Energy Agency (IEA) annual report, followed by its regular monthly summary on Thursday.
Oil prices had fallen in five of the past six weeks amid growing concerns over a supply glut in the market.
The OPEC+ alliance, including Russia, began easing production cuts while freezing plans for additional increases in the next quarter. Meanwhile, non-OPEC producers, including the United States, have also increased output levels.
U.S. sanctions remain under scrutiny, following former President Donald Trump’s targeting of Rosneft and Lukoil in an effort to pressure Russia to end the war in Ukraine. Hungary, which depends on Moscow for energy supplies, received an exemption from the sanctions after discussions with Washington.
Chris Weston, Head of Research at Pepperstone Group, said: “Price movements have been slow and limited on a daily basis, with traders hesitant to push prices strongly in either direction.”
He added that OPEC’s plan to freeze production increases in the first quarter may help ease some of the negative pressures on the market.
Agencies
