Oil prices rose alongside gains in Asian equities, supported by signs of a gradual recovery in China’s economy. Brent crude hovered near $72 per barrel, while West Texas Intermediate (WTI) traded above $68. This uptick followed a 3% decline in Brent prices last week. China's manufacturing activity expanded for the second consecutive month in November, indicating progress after stimulus measures introduced in late September. Concurrently, OPEC+ postponed its meeting on oil supply by four days, adding to market anticipation.

Traders are focused on the OPEC+ meeting for signals regarding future production policies. The group is widely expected to extend its production cuts for the third time, aiming to stabilize the market. Since mid-October, oil prices have fluctuated within a narrow $6 range, influenced by geopolitical tensions in the Middle East and Russia, speculation about another Trump presidency, and China's economic outlook.

Warren Patterson, ING Groep NV’s head of commodities strategy, highlighted the delicate balance OPEC+ faces between supporting oil prices and preventing a loss of market share. Meanwhile, the U.S. dollar strengthened following President-elect Donald Trump's warning to BRICS nations against creating an alternative currency to the dollar.

In geopolitical developments, a truce between Israel and Hezbollah in the Middle East has largely held, despite mutual accusations of ceasefire violations. Additionally, Iran has pledged support for Syria’s government following the loss of Aleppo to insurgent forces, signaling an escalation in regional conflict.

Paraphrasing text from "Bloomberg" all rights reserved by the original author.