Oil Prices Stabilize Amid Strong Dollar and OPEC+ Meeting

Oil prices remained relatively stable in Asian trade on Tuesday under pressure from a strong dollar, as traders awaited U.S. economic data and remained cautious ahead of an OPEC+ meeting this week.

Oil prices suffered losses from last week following a ceasefire agreement between Israel and Hezbollah, which eased tensions in the Middle East. However, ongoing tensions between Russia and Ukraine continued to maintain some risk premium in the market.

Brent oil futures for February held steady at $71.83 per barrel, while West Texas Intermediate crude futures edged down 0.1% to $67.79 per barrel by 20:33 ET (01:33 GMT).

OPEC+ Meeting Awaits Supply Guidance

The Organization of Petroleum Exporting Countries and its allies, known as OPEC+, are scheduled to meet on December 5. The cartel is expected to delay plans to boost production due to persistently low oil prices and concerns over weak demand.

This week’s OPEC+ meeting, which has been postponed by four days, will be conducted virtually. The organization has been reducing its oil demand forecasts throughout the year, particularly focusing on declining economic growth in China, the world's largest oil importer.

Although some recent economic indicators from China showed improvement, analysts warn that significant stimulus measures will be necessary to sustain economic recovery.

Influence of a Strong Dollar on Crude Prices

The strengthening dollar negatively impacted crude prices this week, driven in part by U.S. President-elect Donald Trump’s threats of imposing high tariffs on BRICS nations. Traders are also anticipating key U.S. economic readings to gauge the health of the world’s largest fuel consumer.

Nonfarm payrolls data due on Friday is expected to reveal insights into the labor market and influence interest rate outlooks. Several Federal Reserve officials are set to speak this week, leading up to the central bank’s final meeting for the year later in December. While a 25 basis points rate cut is anticipated, markets remain uncertain about long-term rate projections.