Categories: Business & Economy

Oil increases after the production of OPEC + of production less than expected

New York, October 6 (Reuters) – Oil prices increased by around $ 1 Monday after the expected increase in OPEC + production for November was more modest than expected, the temperature of certain concerns concerning the addition of supply, although a soft prospect of demand is likely to cap the short -term gains.

Brent -gross trial contracts increased $ 1.07, or 1.66%, at $ 65.60 per barrel at 12:52 p.m. HAE (1652 GMT), while US West Texas Intermediate Brut was $ 61.84, up 96 cents, or 1.58%.

“The market believes that the real quantity of oil that will strike the market is much lower than they have announced, since some OPEC + members are already producing capacity,” said Andrew Lipow, president of Lipow Oil Associates.

On Sunday, the organization of oil exporting countries, as well as Russia and some small producers, said that it would increase the production of November by 137,000 barrels per day, corresponding to the figure of October, in the midst of persistent concerns concerning an overabundance of imminent supply.

In the perspective of the meeting, sources have said that, although Russia argues for an increase of 137,000 B / d to avoid putting pressure on prices, Saudi Arabia would have preferred double, triple or even four times to quickly return to market share.

The modest production update also comes at a time of increase in Venezuelan exports, the resumption of Kurdish oil flows via Turkey and the presence of unsold Middle East barrels for November loading, said Tamas Varga, analyst of PVM oil partners.

Saudi Arabia has not changed the official sales price of the Arab light crude that it sells in Asia.

While the refining of sources in Asia interviewed by Reuters expected a slight increase, these expectations have decreased, because concerns concerning the increase in gross supply of the Middle East lost the premium to a hollow of 22 months last week.

In the short term, some analysts expect the maintenance season for refineries which soon begins in the Middle East will help prices.

Kirishi’s oil refinery, one of the largest in Russia, interrupted its most productive gross unit following a drone attack and a later fire on October 4, with its recovery which should take about a month, two sources of industry announced on Monday.

The expectations of the fundamental principles of low demand in the fourth quarter are another factor limiting the increase in the market.

Stocks of crude oil, petrol and American distillate increased more than expected during the week ended on September 26, while the refining activity and the demand softened, said last week last week.

“If we see a more stable increase in production, the drop in petroleum prices can be contained. Many now depends on the reduction of the American economy during the rest of 2025 and in 2026, which would contribute enormously to demand,” said Chris Beauchamp, chief analyst of the IG market.

Report by Nicole Jao in New York, Seher Dareen in London, Emily Chow in Singapore; Edition by Emelia Sithole-Matarise, Sharon Singleton and Nia Williams

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