Several trends emerged in the energy markets in 2025 and are set to continue shaping the global oil, gas, and energy equities markets into 2026. Sure, there will be many wild cards in 2026, especially concerning geopolitics and tensions flaring up from the Caribbean to Yemen. These, while impossible to predict, will also impact global energy markets and investor sentiment. Of those trends that can be predicted, supply-demand balances in the oil and gas markets, and the challenges and opportunities faci ...

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]