Oil prices remained largely unchanged as traders looked for indications on OPEC+'s supply plans ahead of their crucial meeting on Thursday. Brent crude traded near US$72 a barrel, just 1 cent lower than Monday's close, while West Texas Intermediate hovered around US$68. Recent price movements have been subdued, with implied volatility dropping to its lowest point in about two months. Market participants continue to expect the producer group to delay restoring some production, concerned about a potential glut next year.

"Despite the ongoing cross-currents we've hit a fair value that looks sticky for the short-term," said Chris Weston, Head of Research for Pepperstone Group. "For now, the oil market is happy to massage positions and prepare to react should new news break."

Geopolitical Tensions Affect Oil Markets

In the Middle East, Israel confirmed its commitment to a ceasefire despite carrying out airstrikes in Lebanon in response to Hezbollah's first attack under the truce. Meanwhile, tensions escalated in Syria, with rebels attacking key cities.

Weather Patterns and Diesel Demand

In Europe, colder-than-usual temperatures at the start of winter have sparked some optimism in the diesel market, which includes heating oil still widely used in the region. Speculators have cut short positions for refined products for the fourth consecutive week, marking the longest such streak since February.

Bloomberg