Brent crude held steady on Friday as investors assessed the latest developments in Russia-Ukraine peace discussions and awaited the OPEC+ meeting set for Sunday. The talks and the policy outlook could determine future supply levels, which have pressured prices in recent weeks.
Front-month Brent crude futures, which expire on Friday, traded at $63.34 a barrel at 0134 GMT. The contract was unchanged from Thursday’s close. The February Brent contract slipped 2 cents to $62.85. U.S. West Texas Intermediate (WTI) crude rose 35 cents to $59.00 after the Thanksgiving holiday pause in trading.
Both benchmarks are on track for a fourth consecutive monthly loss, marking their longest losing streak since 2023. Analysts said rising global supply continues to weigh on prices and limit market momentum.
Investors track peace progress
Ukraine and U.S. officials are set to meet this week to build on recent discussions in Geneva aimed at establishing a path to peace and security guarantees for Kyiv. Ukrainian President Volodymyr Zelenskiy said the delegations would work on a formula that could shape future negotiations.
Russian President Vladimir Putin said draft proposals explored by the United States and Ukraine could serve as a basis for a long-term agreement. He added that U.S. envoy Steve Witkoff plans to visit Moscow early next week. Putin also said that Russia would continue its military efforts if talks fail to move forward.
Market analysts said traders remain cautious. “After several false dawns, participants are reluctant to position aggressively until concrete progress or a breakdown materialises,” IG markets analyst Tony Sycamore said.
Supply expectations guide sentiment
OPEC+ is expected to keep current output levels unchanged at its Sunday meeting, according to delegates familiar with internal discussions. The group may also agree on a mechanism to evaluate members’ maximum production capacity. Any official decision will influence short-term expectations for global supply.
Hopes for future interest rate cuts by the Federal Reserve have supported sentiment this week. Brent crude and WTI are positioned to finish the week with gains of more than 1%, as rate reductions could stimulate economic activity and increase oil demand.
Key trends in global flows
India’s imports of Russian oil are expected to fall in December to their lowest level in at least three years. Traders said the decline reflects shifting economics and refiners’ adjustments to supply availability.
In the United States, the number of operational oil rigs dropped to a four-year low this week. Analysts said the decline offers limited support to prices by signaling slower production growth.
As markets monitor geopolitical developments and supply decisions, traders expect oil prices to remain sensitive to shifts in negotiations and policy signals through the coming week.
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