(Dec 8): Oil steadied as traders monitored India’s buying of Russian crude and Ukrainian attacks on its neighbour’s energy infrastructure.
Brent crude traded below US$64 a barrel after posting its first back-to-back weekly gain since August, while West Texas Intermediate was near US$60. Russian President Vladimir Putin last week promised “uninterrupted shipments of fuel” to India, which will likely be a key point for discussions as US negotiators arrive in the South Asian nation for trade talks.
Progress on a potential peace deal between Ukraine and Russia also remained in focus. US President Donald Trump said he was disappointed in Ukrainian President Volodymyr Zelenskiy’s handling of a US proposal to end the war, which began with Russia’s full-scale invasion.
Meanwhile, Ukraine has attacked Russian infrastructure, including the CPC terminal — a key export conduit in the Black Sea. That curtailed loadings and boosted physical crude prices, with Kyiv also targeting other energy facilities.
Those tensions will be weighed against concerns over a global glut, with higher supply from Opec+ and producers outside the group — including the US, Brazil and Guyana — set to overwhelm tepid demand growth. The US’s Energy Information Administration, the International Energy Agency and the Organization of the Petroleum Exporting Countries will publish monthly market outlooks this week that may provide further insights.
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“Oversupply concerns will eventually be realised, especially as Russian oil and refined product flows eventually circumvent existing sanctions,” said Vivek Dhar, an analyst with Commonwealth Bank of Australia. That will see Brent futures fall toward US$60 a barrel through 2026, he said.
Prices:
- Brent for February settlement rose 0.1% to US$63.79 a barrel at 9.11am in Singapore.
- WTI for January delivery climbed 0.1% to US$60.13 a barrel.
Uploaded by Arion Yeow
