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Oil stuck between demand slump and OPEC+ cuts

Prices steady near $60 amid weak demand

Oil between OPEC+ decisions and slowing demand: Where are prices headed before the end of 2025? Oil is currently trading near $60.24 per barrel, one of the lowest levels seen in the second half of the year, following a series of consecutive declines due to slowing global demand and increasing economic pressures in major markets. Slowing demand pressures prices Recent data indicates a slowdown in energy demand, especially in China and Europe, as industrial activity remains weak and financing costs rise. Additionally, ample supply in the markets has contributed to the downward trend, as the United States continues to record high levels of production and inventories.

OPEC+ Attempts to Balance the Market

On the other hand, OPEC+ is making efforts to maintain price stability by extending voluntary production cut agreements. However, the commitment of some member countries remains uneven, reducing the impact of these cuts. Markets are closely watching the organization's upcoming meeting to assess the possibility of additional production reductions if price pressures persist below $60.

Geopolitical Factors Have Limited Impact

Despite ongoing geopolitical tensions in production regions, their effect on prices has recently remained limited, given the abundant supply and the investors' reduced appetite for risk in commodity markets.

Future Outlook

Until the end of 2025, oil is likely to remain within a range of $58 to $65 per barrel unless new catalysts emerge to boost global demand.

Any significant increase would require a clear improvement in global economic activity or more aggressive cuts from OPEC+.

If the slowdown in demand continues, prices may face further downward pressure toward critical support levels near $58.

Overall Trend: Bearish in the short term, stable to neutral in the medium term.

• Support: 59.00 – 58.00
• Resistance: 61.50 – 63.20

Forecast: Continued sideways trading with a downward bias, with a possibility of a limited corrective rebound if the 61.50 level is breached.

- Source: U.S. Energy Information Administration (EIA)

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