Oil Prices Hold Steady Amid OPEC+ Pause and Global Market Uncertainty

Crude oil prices remained largely stable on Monday as markets digested the latest moves by OPEC+ and weighed concerns over global supply and weak manufacturing data in Asia. Brent crude edged up 12 cents to $64.89 a barrel, while U.S. West Texas Intermediate (WTI) rose 7 cents to $61.05.

The OPEC+ alliance, which includes major oil-producing nations, recently agreed to a modest increase in output for December, followed by a planned pause in production growth during the first quarter of 2026. This cautious approach helped counterbalance concerns about a potential oversupply in global markets.

Supply dynamics are further complicated by geopolitical factors, including uncertainties surrounding Russian oil exports and sanctions, which continue to influence market sentiment. Meanwhile, sluggish economic activity in Asia, the world’s largest oil-consuming region, has put additional pressure on demand forecasts. Chinese oil demand growth has slowed as the country accelerates its transition to greener energy sources, though rising consumption in India offers some long-term optimism for oil markets.

A strong U.S. dollar also contributed to modest price restraint, making crude more expensive for buyers using other currencies. At the same time, U.S. manufacturing activity has contracted for several consecutive months, highlighting broader economic caution that could affect oil consumption.

In India, refiners have begun shifting purchases from Russian crude to alternative sources, including the Middle East, in response to international sanctions. While these substitutions are often costlier, they ensure continued supply, underscoring the global market’s adaptability in the face of shifting trade dynamics.

Overall, oil markets appear balanced between steady production from OPEC+ and demand headwinds from economic slowdowns and currency pressures. Analysts suggest that while short-term price swings are likely, long-term fundamentals remain closely tied to global supply adjustments and evolving demand patterns in emerging economies.