US EditionOPEC+ Nears Its Limit, Leaving Prices One Crisis Away From a Spike
OPEC+ raises output cautiously as spare capacity shrinks to about 4 million barrels per day, risking supply shocks despite expected market surplus next year.
- This past week, OPEC+ agreed to a modest production increase, with a smaller-than-expected hike of 137,000 barrels per day for November.
- Unwinding cuts, OPEC+ tapped the 1.65 million-bpd layer of reductions to help Saudi Arabia regain market share and score political points with the White House.
- Analysts note actual output may be smaller than headline hikes as the IEA estimates total OPEC+ spare capacity at 4.05 million bpd, including 2.43 million in Saudi Arabia, 850,000 in the UAE and 320,000 in Iraq.
- Market reaction was mixed, with the modest hike seen as easing short-term glut fears, but analysts warned the boost could contribute to a likely global surplus next year.
- Looking ahead, thinning buffers leave the market exposed to shocks as OPEC+ unwinds cuts and the global oil buffer shrinks, while attacks on Russia’s network could soon dent supplies.
12 Articles
12 Articles
OPEC oil output increase likely to lead to glut
OPEC and its allies agreed to a modest increase in oil production, which will contribute to a likely glut in the global market in the year ahead but will help Saudi Arabia win political points with US President Donald Trump. Brent crude prices held steady on Tuesday, as the production increase was below what many traders anticipated. But a dip is likely in the making, with Goldman Sachs predicting per-barrel prices close to $50 by next year — fr…
OPEC+ nears its limit, leaving prices one crisis away from a spike – Oil & Gas 360
(Oil Price)– The OPEC+ group continues to return modest volumes of supply to the market, cautious not to sink oil prices as demand weakens after the summer. The production hikes are estimated to be lower than the headline figures suggest—some producers lack the capacity to boost output further, while others are compensating for previous overproduction. While the lower-than-planned production increases support oil prices, they also reduce the spar
FXStreet
Bitcoin Ethereum NewsWTI extends rally for fourth day as OPEC+ output hike offsets US inventory build
West Texas Intermediate (WTI) Crude Oil is extending its recovery for a fourth consecutive day on Wednesday, with the market staging a fresh leg higher immediately after the release of the US Energy Information Administration’s (EIA) weekly Crude Oil Stocks Change report.
Oil prices are rising, influenced by the weekend decision of the OPEC+ group to increase oil production to a smaller extent than expected from next month. However, concerns about the supply overhang are holding back the price growth, according to analysts. The OPEC+ group includes the Organization of the Petroleum Exporting Countries and its allies, led by Russia. The price of North Sea Brent oil increased by 1.4 percent at around 17:15 our time…
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