Brent crude prices were broadly unchanged on Friday, with global oil markets treading cautiously ahead of two major developments: progress in the Russia-Ukraine peace discussions and the upcoming OPEC+ meeting.
Both factors are expected to influence supply expectations, which have been weighing on prices for several weeks. In early Asian trade, front‑month Brent futures, set to expire on Friday, held at $63.34 a barrel, unchanged from the previous session’s close, reported Reuters.
The more actively traded February contract hovered at $62.85, down a marginal 2 cents. Trading volumes remained thin as investors avoided making large bets.
US West Texas Intermediate (WTI) crude rose 35 cents, or 0.60 per cent, to $59.00 a barrel. There was no settlement on Thursday due to the Thanksgiving holiday, leading to slightly uneven price adjustments.
Both benchmarks are heading towards a fourth consecutive monthly decline, the longest stretch since 2023, driven by rising global supply that has pulled prices lower despite intermittent geopolitical support.
Spotlight on Peace Talks and Western Sanctions
Investor attention is firmly on ongoing negotiations for a possible Russia-Ukraine peace deal. Any breakthrough could prompt the lifting of Western sanctions on Russian oil, potentially unleashing additional supply into already well‑stocked markets.
Russian President Vladimir Putin said on Thursday that draft peace proposals from the United States and Ukraine could form the basis of an eventual agreement to end the conflict.
However, he warned that Russia would continue fighting if talks fail to move forward. Putin also revealed that Donald Trump’s special envoy, Steve Witkoff, is expected to visit Moscow early next week.
In parallel, Ukrainian President Volodymyr Zelenskiy noted that both Ukrainian and US delegations will meet this week to refine the framework discussed in Geneva, which aims to bring lasting peace and guarantee security arrangements for Kyiv.
“After several false dawns, participants are reluctant to position aggressively until concrete progress, or a breakdown materialises,” IG Markets analyst Tony Sycamore wrote in a note, reflecting the caution prevalent in the trading community.
OPEC+ Meeting: No Major Surprises Expected
The focus now turns to Sunday’s OPEC+ meetings, where the alliance of oil‑producing countries is widely expected to maintain current output levels.
Two delegates and a source familiar with the discussions told Reuters that the group is also likely to agree on a mechanism to evaluate members’ maximum production capacity, a step that could influence future supply decisions.
Despite supply concerns, Brent and WTI are poised to end the week with gains exceeding 1 per cent. Expectations of an upcoming interest‑rate cut by the US Federal Reserve have buoyed sentiment, as lower borrowing costs typically support economic activity and oil demand.
Another supporting factor for prices has been the decline in operational oil rigs in the United States. The rig count dropped to its lowest level in four years this week, signalling potential future supply tightening from US producers.
As markets head into the weekend, crude traders remain in wait‑and‑watch mode.
