KEY POINTS
- Brent crude rises to $65.93 per barrel as traders digest OPEC+’s cautious stance.
- Fears of oversupply ease after group opts for modest 137,000-barrel daily increase.
- Market awaits U.S. inventory data amid steady Russian oil exports.
Oil prices climbed on Wednesday as traders took comfort in OPEC+’s decision to limit the scale of its output hike, easing earlier concerns about a potential glut in global supply.
By 4 a.m. GMT, Brent crude had gained 48 cents, or 0.7 per cent, to trade at $65.93 a barrel, while U.S. West Texas Intermediate rose 51 cents, or 0.8 per cent, to $62.24.
Both benchmarks had settled flat a day earlier as the market weighed the threat of oversupply against the smaller-than-expected increase in November production announced by OPEC and its allies.
Emril Jamil, senior analyst at LSEG Oil Research, said the market remained torn between two competing outlooks: one pointing to a looming supply surge and the other expecting a slower ramp-up than anticipated. “Prices are trading higher for now as traders hold long positions on continued efforts to limit Russian crude flows,” he added.
OPEC+ Moderation Calms Traders, but Russian Exports Keep a Lid on Prices
The coalition of oil-producing nations agreed to raise production by just 137,000 barrels per day—the most modest increase among several options discussed over the weekend. Analysts at ANZ said investors were likely to overlook the increase unless inventories begin to rise.
However, the gains remained capped as Russian crude shipments have stayed close to a 16-month high over the past four weeks, tempering fears of major disruptions in supply.
Investors are now turning their focus to U.S. inventory data due later in the day from the Energy Information Administration. Preliminary figures from the American Petroleum Institute showed U.S. crude stocks rising by 2.78 million barrels in the week ending October 3, while gasoline and distillate inventories fell.
The U.S. Energy Information Administration also said on Tuesday that domestic oil production was on track to set a larger annual record this year than previously forecast—a signal that could add further pressure on global prices in the months ahead.
