In its first day as the active contract, WTI crude oil for January delivery closed up US$1.35 to settle at US$70.10 per barrel, while January Brent crude, the global benchmark, was last up US$1.35 to US$74.16.

Russia's war on Ukraine heated up on Wednesday, with Ukraine making its first attack on Russian territory using foreign-supplied missiles after the Biden Administration allowed their use earlier this week. Ukraine said Russia responded by launching an intercontinental ballistic missile at the city of Dnipro, though the use of the missile made to launch nuclear weapons has yet to be confirmed, The Guardian reported.

Rising U.S. oil inventories, weak demand from China and higher Western Hemisphere production is expected to push supply above demand in 2025. Reuters on Wednesday reported OPEC+ may again further delay the unwinding of 2.2-million barrels per day of voluntary supply cuts when it meets on Dec.1. It had planned to begin adding 180,000 bpd of supply monthly in January, but is monitoring market conditions before proceeding.

"There is lot to ponder and there is a variety of unknown factors, particularly on the geopolitical front, that could trigger sudden elevations in oil prices ... Yet, what is observed is that the known ingredients, such as global supply excess pencilled in for next year and the Chinese economic malaise will ensure that any rally based on unforeseen events is brief unless they materially alter the currently more than adequate oil balance," PVM Oil Associates noted.

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