Oil prices rose in Asian trading on Monday, supported by expectations of tighter supply following OPEC+’s decision to slow the pace of production increases in October. The market also remains sensitive to geopolitical uncertainty, including ongoing tensions from the Russia-Ukraine conflict, while U.S. efforts to broker a ceasefire have produced limited progress.
Brent crude for November delivery climbed 0.6% to $65.90 per barrel, while West Texas Intermediate (WTI) futures rose 0.6% to $61.83 per barrel as of 20:56 ET (00:56 GMT).
OPEC+ Implements Smaller Production Hike
OPEC+—the alliance of the Organization of Petroleum Exporting Countries and its allies—announced a cumulative production increase of 137,000 barrels per day for October, significantly lower than the 555,000 bpd and 411,000 bpd monthly hikes recorded earlier this year. Saudi Arabia and other members had previously raised output steadily to regain market share amid falling oil prices. The group highlighted continued caution over potential weakening in global demand, particularly amid signs of slowing U.S. growth and muted activity in top importer China.
Market Context and Recent Trends
Oil futures retreated 3–4% last week due to concerns over slowing global demand. A sharp drop followed disappointing U.S. nonfarm payrolls data, signaling cooling economic momentum in the world’s largest economy. While lower interest rate expectations supported the dollar, investors worried that slower growth could curb fuel consumption. U.S. inventory data also showed an unexpected build, with local fuel demand tapering after the end of the summer driving season, raising concerns over a potential supply surplus in the northern hemisphere this winter.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Leave a Reply