Oil prices showed slight gains, fluctuating throughout the trading day as traders weighed the risks of potential supply disruptions from Middle East tensions against signals of an impending supply surplus. West Texas Intermediate (WTI, Financial) crude increased by 0.5%, closing above $68 per barrel, while Brent crude settled near $72 per barrel. During trading, WTI saw an intraday high of 1.1% and a low of 1.7%.
Reports, unverified at the time, suggested that Iran might pause its retaliation against Israel, initially pushing oil prices down. However, prices rebounded after Israel reported projectiles launched from Lebanon. Despite recent fluctuations, oil prices remain over 20% below their peak this year, driven by expectations of weak demand and increased output from non-OPEC+ countries, along with plans from OPEC+ to restore some production, pointing to a potential supply surplus next year.
Oil prices have been trading within a narrow range of just over $6 for almost a month, prompting some risk-seeking investors to hold off. Additionally, the U.S. dollar has been strengthening for the fourth consecutive day, reducing the appeal of commodities priced in dollars.
For December delivery, WTI crude futures rose by 0.5%, settling at $68.43 per barrel. January Brent crude also gained 0.5%, closing at $72.28 per barrel.
