West Texas Intermediate (WTI) Oil prices held steady above $60.00 as market participants awaited updates from the US-China trade talks. There was speculation about President Trump’s encouragement for China to reduce its purchases of Russian Oil during his meeting in South Korea.

Following previous increases, WTI Oil traded around $60.10 per barrel. Crude Oil prices remained stable due to trader caution post the US-China meeting, which focused on major trade and economic discussions.

South Korea Meeting Highlights

In South Korea, Presidents Trump and Xi Jinping discussed various issues, including Russian Oil purchases and other trade matters. Meanwhile, US sanctions on Rosneft have reignited discussions in Germany about potentially nationalising the company’s operations, with a key Berlin refinery exempted from sanctions until April 2026.

OPEC+ considered a slight output increase in December amid gradual monthly hikes. Eight OPEC+ members have raised output targets significantly, but still fall short of cumulative cuts from previous years.

WTI Oil, known for its low sulfur content, is a key global benchmark sourced in the US. Its price is influenced by supply-demand dynamics, geopolitical events, and OPEC’s production quotas. Inventory data from API and EIA heavily impacts prices, with drops potentially indicating higher demand.

We see WTI crude holding steady around $85 a barrel, as the market weighs conflicting supply and demand signals. Traders are hesitant to take large positions ahead of crucial US-China talks scheduled for next month and the upcoming OPEC+ policy meeting. The current price stability masks underlying volatility that could emerge in the coming weeks.

Future Implications

The focus is shifting to renewed high-level talks between Washington and Beijing. We are watching for any developments on energy security, particularly regarding China’s continued purchases of sanctioned oil. Recent customs data from September 2025 showed China’s crude imports remained robust at over 11 million barrels per day, much of it sourced from Russia and Iran, creating a point of friction.

In Europe, we are closely monitoring the situation in Germany regarding the future of the Schwedt refinery. The US sanctions exemption for Rosneft’s German assets is set to expire in April 2026, and discussions about a potential nationalization are intensifying. This situation introduces a significant risk to European refined product supply, particularly for diesel, ahead of the winter months.

The next major catalyst will be the OPEC+ meeting scheduled for early December. There is considerable debate on whether the group will roll over its existing production cuts into 2026 to support prices amid global growth concerns. Looking back at how the group managed the market through voluntary cuts in late 2023, we expect any decision to be aimed at maintaining a floor under prices without stifling demand.

On a shorter-term basis, we should pay close attention to weekly inventory data for signs of demand strength. Yesterday’s EIA report, for instance, showed a surprise crude draw of 2.1 million barrels when a small build was expected. This indicates that underlying US demand remains firm, which could provide support for prices if geopolitical headlines turn negative.

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