The barrel price of Brent oil, which rose to $62.85 yesterday, ended the day at $62.83.
The barrel price of Brent oil rose about 0.4 percent compared to today's close at 9:35 a.m. to reach $63.06. At the same time, West Texas Intermediate (WTI) crude oil sold for $58.96 per barrel.
Moves to end the Russia-Ukraine war, expectations for the meeting of the eight member countries of the OPEC+ group and predictions that the US Federal Reserve (Fed) may cut interest rates in December had a positive impact on price action.
Following yesterday's Kremlin statement, Russian President Vladimir Putin said at the press conference after the Collective Security Treaty Organization summit in Bishkek, capital of Kyrgyzstan, that the US-drafted “peace plan” for the Ukraine crisis could be the basis for possible agreements. Putin said U.S. officials would come to Moscow in the first half of next week to discuss the plan.
Kremlin foreign policy adviser Yuri Ushakov also announced that US President Donald Trump's special envoy Steve Vitkoff would visit Moscow next week.
Andriy Yermak, head of the Ukrainian presidential office, also announced in his social media post that they would continue to work with the US side this weekend to discuss the “peace plan.”
These developments toward the end of the war strengthen expectations that sanctions-related export restrictions on Russian oil will be eased and the geopolitical risk premium will decline. This situation brings with it assessments that Russian oil could flow more regularly to the global market and supply could increase and put pressure on prices.
On the other hand, the 8 member countries of the OPEC+ group, consisting of Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman, will meet online on November 30 to evaluate production policies. At the last meeting on November 2, the countries decided to increase production by 137,000 barrels per day in December and halt increases in the January-March period next year.
The fact that no policy change is expected at the meeting provides a positive outlook for oil prices, with the expectation that supply will remain stable and uncertainty will decrease.
Additionally, expectations that the Fed will cut interest rates in December continue to buoy prices as it will increase economic growth and oil demand.
Technically, Brent oil is seen as a resistance zone at $57.56 and a support zone at $66.63.
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