Oil prices โstabilized Friday as Brent crude reached $63.34โข per barrel,โ despiteโ facing headwinds from increasing globalโค suppliesโ and ongoing geopoliticalโฃ uncertainty. The market is closely watching potential shifts in the Russia-Ukraine conflict and upcomingโ OPEC+โค decisions, factors โthat could significantly alter the supply โคlandscape and impactโ energy costs for โconsumers and businesses worldwide. This comes after both major crude benchmarks โคare poised to record their fourth consecutiveโ monthly decline-the longest such โstreak since 2023-raising concerns about global economic โgrowth and โคdemand.
Contributing to the price stability were signals of potential easingโข in monetary policy by the US Federal Reserve, sparking hopes for increased economic activity and, consequently, higher oil demand. Additionally, a decrease in โthe number of active oil rigs in the United States toโ aโ four-year low providedโค some support. Though, the overarching narrative remains dominatedโ byโ the possibility of increased supply stemming from a โpotential peace agreement between Russia and Ukraine.
Russian President Vladimir Putin stated Thursday that โฃdraft peace proposals discussed between the United States and โUkraineโข could serve as a foundation for future agreements, though he affirmed Russia woudl continue fighting absent a resolution. He also noted โthat US President’s special envoy Steve Witkoff plans to visit Moscow early next week. Simultaneously, Ukrainian President Volodymyr Zelenskyโ announcedโค that American and Ukrainian delegations will meet this โคweek to refine a peace formula discussed in Geneva, aiming to secure security guarantees for Kiev.
Looking ahead, OPEC+ is expectedโฃ to maintain current oil production levelsโ at its meeting sunday, while also exploring a mechanism to evaluate the maximum production capacity of its member states, according to sources within the group. Despite these developments, both Brent and West Texas Intermediate crude are currently on track to close the week with gains โexceeding 1%.