The global oil market is experiencing a modest recovery after recent declines, with prices rise up due to OPEC+ considering delaying a planned output increase. This, coupled with a significant drop in U.S. crude oil inventories, has provided some support to prices. However, ongoing concerns about global demand continue to limit gains.
Brent crude futures for November increased by 15 cents to $72.85, while U.S. West Texas Intermediate (WTI) futures rose by the same margin, reaching $69.35. Despite these gains, the market remains cautious due to uncertainty in demand, particularly from China, the world’s largest oil consumer.
OPEC+ is reconsidering its decision to increase oil output by 180,000 barrels per day in October. This comes as prices have dropped significantly, prompting discussions among the group to delay the planned increase. A potential end to the disruption in Libyan exports and weak demand from China have further complicated the situation.
According to market analysts, the news of OPEC+ possibly delaying its output hike has eased pessimism in the market. As a result, oil prices have shown slight rise, though they remain volatile.
Adding to the upward pressure on oil prices, the American Petroleum Institute (API) reported a steep drop in U.S. crude oil inventories. Crude stocks fell by 7.431 million barrels in the week ending on August 30, much more than the anticipated 1 million barrel decline. This has fueled expectations of a further drop when the Energy Information Administration (EIA) releases its official data.
The decline in U.S. stockpiles has helped offset some of the negative effects of weak demand, offering a temporary reprieve for oil prices.
For the latest insights into the global oil market and how it might impact your trading strategy, you can also explore in-depth Forex trading news and analysis on our site at Fixio Markets Blog to stay updated.
Oil prices rise as OPEC+ considers delaying its supply hike, and U.S. crude stockpiles fall sharply. Stay updated and what they mean for you.
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