At 10:52 GMT, Light Crude Oil Futures are trading $62.40, up $0.67 or +1.09%.
OPEC+ Output Hike Underwhelms as Market Eyes Glut
Oil prices found some support from OPEC+’s decision to increase November output by just 137,000 barrels per day—matching October’s increment and falling short of earlier expectations. Analysts noted the increase was minimal and unlikely to alter near-term supply-demand balances unless accompanied by rising inventories.
“The bare minimum that OPEC+ decided to get away with still provided some support,” noted PVM analyst Tamas Varga. Yet, concerns persist about a looming oversupply, especially with global inventories projected to build in coming months. Goldman Sachs sees an inventory build of 1.5 million bpd in the last quarter and expects a surplus of 2 million bpd stretching through late next year.
U.S. Output Hits Records, EIA Sees Prices Under Pressure
The U.S. Energy Information Administration added to the bearish narrative, raising its domestic crude output forecast to 13.53 million bpd this year—an all-time high—up from a previous estimate of 13.44 million. This revision was attributed to stronger-than-expected July production and accelerated offshore Gulf output.
EIA now expects WTI crude to average $65 a barrel this year, while Brent is forecast at $68.64—both down roughly 15% year-over-year. The agency also warned that rising global inventories will weigh heavily on prices through the end of this year and into next.
Inventory Data in Focus as Traders Brace for Near-Term Volatility
Investors await official U.S. crude and gasoline stockpile data from the EIA, with expectations for a 400,000 barrel build. On Tuesday, API reported a much larger 2.78 million barrel increase in crude stocks, though gasoline and distillates declined.
