Oil prices are stabilizing after two consecutive days of decline. Brent for December contracts is hovering around $66 per barrel, while WTI rose slightly to $62.41 per barrel. The previous decline occurred as the market reacted to the possibility that OPEC+ would accelerate its planned production increase at its meeting later this week.
Rumors circulated that OPEC+ might increase oil production by 500,000 barrels per day over the next three months to regain market share. However, OPEC denied any such plans. Nevertheless, this rumor has raised market alert and caused price volatility.
Globally, the market is also awaiting confirmation regarding a potential US government shutdown. If Congress fails to pass a budget on time, the government could be paralyzed, risking economic consequences. Meanwhile, the US stock market weakened at the start of the Asian session.
The US oil stock inventory report also provided mixed signals. Crude oil stocks fell by 3.7 million barrels last week, but gasoline and diesel inventories actually rose. On the other hand, the International Energy Agency (IEA) predicts a global oil surplus next year—so despite supporting factors like China’s oil stockpiles, the market remains cautious. (ads)
Source: Bloomberg.com