Oil steady amid OPEC+ meeting, interest rate outlook

Oil prices steadied on Monday as optimism over strong factory activity in China largely offset concerns that the US Federal Reserve will not cut interest rates again at its December meeting. The OPEC+ meeting later this week was also in focus.

In trading, Brent crude futures fell 1 cent, or 0.1%, to $71.83 a barrel.

While US West Texas Intermediate crude rose 10 cents, or 0.15%, to $68.10 a barrel.

Traders were also following developments in the Middle East as Israel resumed attacks on Lebanon despite a ceasefire agreement. The truce between Israel and Lebanon’s Hezbollah group went into effect on Wednesday but both sides have traded accusations of violating it.

Benchmark Brent and West Texas Intermediate crudes fell more than 3% last week, as concerns eased about supply disruptions from the conflict between Israel and Hezbollah and the prospect of increased supply next year despite expectations that OPEC+ will extend production cuts.