Crude oil prices are experiencing upward momentum due to several key factors influencing the market. A significant driver is the anticipation of the OPEC+ meeting on December 5, where the coalition is expected to discuss extending current production cuts into the first quarter of 2025. This potential extension is supported by compliance from major producers like Russia and Iraq, as reported by analysts. Additionally, the U.S. has imposed new sanctions on Iranian crude, which is expected to curb global oil supplies and contribute to the bullish sentiment in the market. The weakening of the U.S. dollar has also played a role in supporting higher crude prices, as it makes oil cheaper for holders of other currencies.
Russia's recent surge in crude oil shipments, increasing by 570,000 barrels per day to 3.36 million bpd, has added complexity to the supply landscape. However, the market remains optimistic about the potential delay in OPEC+'s planned production increases, which could help stabilize prices. Despite these positive signals, there are bearish factors at play, such as China's declining oil demand and the potential for U.S. Federal Reserve policy to sustain a strong dollar, which could pressure crude prices. The geopolitical tensions in the Middle East further add to the market's cautious tone, as they could impact supply dynamics.
The ProShares UltraShort Bloomberg Crude Oil ETF (SCO) is currently trading at $17.59, reflecting a 5.18% decrease from the previous close.