Oil Stabilizes After Selloff Amid OPEC Reassessment and U.S. Funding Deal

Core Insights - Oil prices stabilized after a significant drop, with Brent at approximately $63.08 and WTI at around $58.80, as traders reassessed OPEC's market outlook for 2026 [1][3] - The U.S. funding deal resolution alleviated some macroeconomic concerns, but crude oil remained influenced by supply signals rather than broader market sentiment [1][5] Supply and Demand Dynamics - OPEC's updated projections indicate a shift from a deficit outlook to a neutral supply-demand balance for the upcoming year, influenced by rising non-OPEC output and moderate consumption growth [3][5] - The International Energy Agency (IEA) has outlined a softer demand trajectory, contributing to market concerns about potential surplus risks [3] Market Reactions - Diesel margins strengthened, while crude futures showed a slower recovery, with Murban trading at approximately $65.43 due to steady Asian demand [4] - A softer dollar and lower Treasury yields provided some support to commodities, but did not alter the outlook for crude supplies [6] Current Market Conditions - Traders are maintaining small positions following the recent selloff, awaiting guidance on OPEC+ output levels and demand expectations for early 2026 [6]