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Oil Markets Uncertain as Supply Optimism Battles Demand Doubts

Oil prices navigated a turbulent terrain this week, caught between bullish supply signals and bearish demand concerns.

From the fallout of the U.S. presidential election to shifting OPEC+ strategies and China’s demand struggles, the crude market reflected the clash of forces shaping global energy.

Traders faced renewed uncertainty as supply-side factors collided with weakening demand forecasts, creating a push-and-pull that has kept prices volatile.

OPEC+ Delays Planned Production Increase

OPEC+ provided supportive news for oil prices by announcing a delay in its planned production increase initially scheduled for December. The coalition, which includes OPEC and other oil-producing allies like Russia, decided to extend production cuts of 2.2 million barrels per day (bpd) into December due to ongoing demand concerns and non-OPEC supply growth. Although Libya’s resumed production introduced some upward pressure on global supply, improved compliance from countries like Iraq has helped balance the market in recent months.

Analysts note that OPEC+ is taking a conservative approach, monitoring global economic recovery signs from U.S. and Chinese economic policy adjustments before committing to further supply adjustments. This cautious approach has offered traders some confidence in price stabilization.

Impact of U.S. Presidential Election and Stronger Dollar on Oil Prices

The U.S. presidential election created immediate effects on crude prices.

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