Oil stable on Wednesday

Oil prices stabilised after their biggest gain in over two weeks, as OPEC+ moved closer to delaying supply increases and the US imposed new sanctions on Iranian oil exports.

Brent crude remained near $74 a barrel following a 2.5 per cent jump, while West Texas Intermediate (WTI) held above $70. OPEC+ delegates signaled progress towards a three-month extension of output limits, while US sanctions targeted 35 entities and vessels involved in Iranian oil transport.

Crude prices have traded within a tight $6 range since mid-October, weighed down by geopolitical tensions, weak Chinese demand, and supply uncertainties ahead of Thursday’s OPEC+ meeting. Analysts warn of a 2025 supply glut, with non-OPEC production expected to outpace demand growth.

US data showed a 1.2-million-barrel rise in crude inventories last week, alongside significant builds in gasoline and distillates, adding to market pressures.

Attribution: Bloomberg

Subediting: M. S. Salama