Crude oil futures are trading mostly sideways, with market participants bracing for potential volatility as they await the outcome of the upcoming OPEC+ meeting.
Investors are closely watching whether the group will decide to extend production cuts, a move that could significantly impact global supply and oil prices.
Speculation around the meeting suggests that OPEC+ may extend its current production cuts by at least three months to support oil prices. If this happens, it could provide a boost to the market in the medium term. However, should OPEC+ opt to ease these cuts in an effort to defend market share, a bearish sentiment could prevail, potentially driving prices lower.
Adding to the uncertainty, ongoing geopolitical tensions in the Middle East remain a key factor influencing crude prices. Any escalation in the region could heighten concerns over oil supply disruptions, which may further fuel upward pressure on prices. The interplay of OPEC+ decisions and geopolitical risks leaves the market in a delicate balance, with the potential for sharp fluctuations in the near future.
