For now, the upside impulses stemming from amplified supply-side risks are being counteracted by the downward drag from elevated US stockpiles and the rising prospects of delayed Fed rate cuts.

Oil prices see an uptick amid the geopolitical tensions and US’ decrease in production amid the severe weather conditions.

Brent is set to be kept rangebound between $70 and the low-$80s. Although rising geopolitical tensions are feeding into supply-side fears, which have helped support oil prices, its near-term gains are set to remain limited by the darkening global demand outlook.

The global oil benchmark has been unable to keep its head above the psychologically-important $80/bbl line, for now. Stronger support may arrive as trading volumes are restored in the new year, provided the US dollar keeps moving lower on hopes for Fed rate cuts in 2024.