Crude oil prices saw little change on Monday as traders weighed the OPEC+ alliance’s plan to pause production increases in the next quarter amid expectations of a slowdown in demand, while the market was widely considered to be heading toward a supply surplus.
WTI crude futures rose by approximately 0.1%, closing above $61 per barrel, fluctuating between slight gains and losses throughout the day.
OPEC+ indicated that the decision made on Sunday to halt production hikes starting in January reflects expectations of seasonal demand softening. Meanwhile, the prevailing prediction of a supply surplus next year could place downward pressure on prices.
Analysts at Morgan Stanley, including Martijn Rats and Charlotte Firkins, stated: ‘The decision to pause production limit hikes in the first quarter does not materially alter our production forecasts, but it still sends an important signal. The group continues to adjust supply based on market conditions.’
Following OPEC+’s decision, Morgan Stanley raised its short-term price forecast for Brent crude while maintaining a warning of ‘significant oversupply.’
WTI crude futures for December delivery rose by 0.11%, settling at $61.05 per barrel;
January Brent crude fell by 0.19%, closing at $64.89 per barrel.