Oil prices have rebounded from the $56.00 lows over the past couple of weeks.
Largely due to sanctions on Russia’s largest oil companies.
However, OPEC+ have announced an upcoming pause on production in January.
What could this mean for oil prices in the future?
What OPEC+ Just Did
OPEC+ confirmed a 137,000 barrel-per-day increase for December 2025, a small step that keeps supply edging higher but they also paused all further hikes through Q1 2026.
Their reasoning? Seasonality and oversupply risks.
In plain English they’re trying to avoid flooding the market just as winter demand cools off.
This is seeing the oil price consolidate between $62.50 and $59.75.
If OPEC shifts to production cuts it could lead to a higher oil price. However, the likelihood of this is low for the time being.
Trading Opportunities
The daily chart shows the clear resistance and support zones. Waiting for a break on either side could decide the next move for the commodity.
For bearish opportunities and a continuation of the overall trend I will look for the price to break and trade below the $59.75 handle.
For bullish opportunities I will be waiting for the price top trade through the $62.25 level.
The 4h chart shows the consolidation pattern forming, as we wait for a fundamental catalyst.