EBC Markets Briefing | Crude prices steady amid thin trading; Nikkei rebounded

Crude prices were little changed on Friday as investors eyed the progress of the Russia-Ukraine peace talks and the outcome of the OPEC+ meeting on Sunday for clues on potential changes in supply.

Russian President Putin said on Thursday that outline draft peace proposals discussed by the US and Ukraine could become the basis of future agreements to end the war, but that if not Russia would fight on.

The OPEC+ will likely decide to leave oil output levels unchanged this weekend and agree on a mechanism to assess members' maximum production capacity, said delegates from the group.

Both benchmark contracts are headed for a 4th straight monthly loss, the longest since 2023. The EIA reported that commercial crude inventories rose by 2.8 million barrels last week, defying expectations for a 1.3 million-barrel draw.

Independent refiners in China have received their first batch of crude oil import quotas for 2026, which is expected to boost crude imports by the world's largest oil importer and ease a supply glut.

But China industrial profits dropped 5.5% from a year earlier in October, the biggest decline since June, reversing the double-digit growth seen in August and September amid trade tensions with the US.

Brent crude remained weak with little to cheer, so the rally may stall around $63 to form a double top pattern. In that scenario, we would see a push below $62.

Asset recap

As of market close on 27 November, among EBC products, the Nikkei 225 Index led gains. The Japanese government will issue around 11 trillion yen in additional bonds to help fund an economic package.

This week is a short week, at least for US trading, as Thanksgiving is celebrated on Thursday. The greenback was heading for its worst weekly performance since late July.

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