Oil prices were little changed on Wednesday, with traders expecting OPEC+ to announce an extension to supply cuts this week as geopolitical tensions continue to dominate market sentiment.
Brent futures were up 5 cents, or 0.07%, at $73.67 a barrel, while U.S. West Texas Intermediate crude futures fell 4 cents, or 0.06%, to $69.90. The market was lifted by a shaky ceasefire between Israel and Hezbollah, South Korea’s curtailed declaration of martial law, and a rebel offensive in Syria that threatens to draw in forces from several oil-producing countries.
However, the bullish momentum has not pushed crude past the $75 resistance, indicating that market sensitivity to geopolitical and economic developments may be waning. Research strategist at Pepperstone, Dilin Wu, said that with OPEC+ widely expected to extend its 2.2 million barrels per day voluntary production cut into the first quarter of 2025, prices are likely to stay range-bound unless a new catalyst emerges.
OPEC+ is expected to extend output cuts until the end of the first quarter next year when members meet on Thursday. Oil prices are likely to be capped unless a new catalyst emerges, according to PVM oil analyst Tamas Varga. U.S. crude oil inventories rose 1.2 million barrels last week, according to market sources, while gasoline stocks also rose by 4.6 million barrels. Official data on oil stocks from the U.S. Energy Information Administration is due on Wednesday at 10:30 a.m. ET.
