Oil prices remained steady, with traders focusing on the risks of 2025, including oversupply and uncertainties surrounding the incoming Trump administration. West Texas Intermediate (WTI) held above US$70 a barrel in thin trading after gaining 1.6% last week, while Brent hovered near US$74.
Crude is on track for a modest loss this year, with trading largely confined to a narrow range since mid-October. The market has been navigating conflicting signals, such as persistent tensions in the Middle East and concerns over demand from China, the world's largest oil importer.
The actions of President-elect Donald Trump, set to take office next month, are likely to keep markets cautious. Trump has already warned of imposing tariffs on oil producers Canada and Mexico, while his chosen national security adviser has promised "maximum pressure" on Iran.
There is widespread expectation that the oil market will face oversupply next year, which could hinder OPEC and its allies' ability to revive idled production.
Despite these factors, WTI has managed to maintain a level above US$70 a barrel, providing some resilience in a market otherwise weighed down by uncertainties.
