OPEC+ Supply Uncertainty and Geopolitical Tensions Weigh on Oil Prices
%2Fhttps%253A%252F%252Fofbadmin.s3.ap-southeast-1.amazonaws.com%252Fnexizo%252Fproduction%252Fstrapi%252FPetroleum_4_b2de717185.png&w=1920&q=100)
Petroleum prices are climbing, with Brent Crude reaching $74.25 per barrel and WTI at $70.74 per barrel, amid geopolitical tensions and uncertain supply decisions. Demand remains weak due to global economic challenges, and OPEC+ is withholding nearly 5.86 million bpd, with a potential supply increase of 200,000 bpd under review.
Key Market Insights
- Price Surge: Brent Crude is trading at $74.25 per barrel, with WTI at $70.74 per barrel, driven by geopolitical developments.
- Demand Concerns: Economic uncertainties continue to hold demand back, with the market cautious on future oil requirements.
- OPEC+ Supply Strategy: OPEC+ may delay adding 200,000 bpd back into the market, with a scheduled rollback of 180,000 bpd in December also under review.
- Geopolitical Tensions: Rising prices were partly due to concerns over Iran’s potential actions in the Middle East conflict.
Petroleum Prices Today
- Global oil markets are witnessing a sustained increase in prices.
- Brent Crude oil on the London ICE (InterContinental Exchange Futures) increased by $1.44, reaching $74.25 per barrel.
- Meanwhile, light crude oil on the NYMEX (New York Mercantile Exchange) increased by $1.48, standing at $70.74 per barrel.
Petroleum Demand and Supply Trends
- Oil prices are facing weekly losses as concerns over demand and potential increases in supply weigh on the market.
- Demand remains fragile due to economic uncertainties, while a possible addition of 200,000 barrels per day (bpd) in supply from OPEC+ could further soften prices.
- OPEC+ currently withholds approximately 5.86 million bpd from the market, and a rollback of 180,000 bpd was scheduled for December.
- Market conditions may prompt OPEC+ to delay this increase by at least a month or more if price vulnerabilities persist.
Petroleum Global News
- Prices saw a brief uptick on reports that Iran could retaliate against Israel over recent conflicts, potentially through an attack involving drones and missiles launched from Iraq.
- This development spiked Brent Crude to $74.16 per barrel, while West Texas Intermediate (WTI) rose to $70.63 per barrel.
- Still, overall price movements remained suppressed. Earlier reports indicated that OPEC+ might consider postponing the planned easing of production cuts, citing market instability.
- Unnamed sources suggested that the December rollback could be postponed due to an unfavourable price environment.
Expert Opinion
Oil prices are expected to remain volatile, with near-term factors like the U.S. presidential election and China’s new economic stimulus package anticipated to significantly influence the market. While traders remain cautious, OPEC+ is unlikely to return withheld supply unless prices stabilize, ensuring that any supply increase aligns with market health.
Daily Market Report
%2Fhttps%253A%252F%252Fofbadmin.s3.ap-southeast-1.amazonaws.com%252Fnexizo%252Fproduction%252Fstrapi%252FPetroleum_97b859b81f.png&w=3840&q=75)
Crude Supplies Stable Despite U.S. Inventory Surge, OPEC Reassures Market
Oil prices dropped in early Asian trading hours on Tuesday as traders booked profits after prices rallied to their highest in over a month on Monday, amid fears that the Middle East could be on the brink of a region-wide war.
Read Story
%2Fhttps%253A%252F%252Fofbadmin.s3.ap-southeast-1.amazonaws.com%252Fnexizo%252Fproduction%252Fstrapi%252FEnergy_and_Petroleum_bb4a6ce960.png&w=3840&q=75)
Goldman Sachs Warns of Oil Price Surge from Iranian Losses
Crude oil futures traded lower on Monday morning after witnessing their largest weekly gains last week due to escalating tensions in West Asia. December Brent oil futures were at $77.75, down by 0.38 percent, and November crude oil futures on WTI (West Texas Intermediate) were at $74.16, down by 0.30 percent.
Read Story
%2Fhttps%253A%252F%252Fd86af0gufpxog.cloudfront.net%252Funsafe%252Fadaptive-fit-in%252F105x89%252Ffilters%253Aformat(webp)%252Fhttps%25253A%25252F%25252Fofbadmin.s3.ap-southeast-1.amazonaws.com%25252Fnexizo%25252Fproduction%25252Fstrapi%25252FFuel_removebg_preview_6f0fa179ea.png&w=3840&q=75)
%2Fhttps%253A%252F%252Fd86af0gufpxog.cloudfront.net%252Funsafe%252Fadaptive-fit-in%252F105x89%252Ffilters%253Aformat(webp)%252Fhttps%25253A%25252F%25252Fofbadmin.s3.ap-southeast-1.amazonaws.com%25252Fnexizo%25252Fproduction%25252Fstrapi%25252FBitumen_VG_40_Drum_e48885dd46.png&w=3840&q=75)
%2Fhttps%253A%252F%252Fd86af0gufpxog.cloudfront.net%252Funsafe%252Fadaptive-fit-in%252F105x89%252Ffilters%253Aformat(webp)%252Fhttps%25253A%25252F%25252Fofbadmin.s3.ap-southeast-1.amazonaws.com%25252Fnexizo%25252Fproduction%25252Fstrapi%25252Foil_barrel_a4d5344c6f.jpg&w=3840&q=75)
%2Fhttps%253A%252F%252Fd86af0gufpxog.cloudfront.net%252Funsafe%252Fadaptive-fit-in%252F105x89%252Ffilters%253Aformat(webp)%252Fhttps%25253A%25252F%25252Fofbadmin.s3.ap-southeast-1.amazonaws.com%25252Fnexizo%25252Fproduction%25252Fstrapi%25252FBase_Oil_SN_500_Bulk_a5e599eba5.png&w=3840&q=75)
%2Fhttps%253A%252F%252Fd86af0gufpxog.cloudfront.net%252Funsafe%252Fadaptive-fit-in%252F105x89%252Ffilters%253Aformat(webp)%252Fhttps%25253A%25252F%25252Fofbadmin.s3.ap-southeast-1.amazonaws.com%25252Fnexizo%25252Fproduction%25252Fstrapi%25252Flight_diesel_oil_0ea2c45fab.png&w=3840&q=75)
%2Fhttps%253A%252F%252Fnexizo.ai%252Fassets%252Fbg-png-msite.png&w=3840&q=30)