Oil prices gained close to 1% on Wednesday as investors grew more confident that supply will remain balanced, following OPEC+’s decision to implement only a modest production increase next month. The move helped ease earlier fears of a potential oversupply in the global oil market.
By 0715 GMT, Brent crude futures climbed 63 cents, or 0.96%, to $66.08 per barrel, while U.S. West Texas Intermediate (WTI) rose 66 cents, or 1.07%, to $62.39. Both benchmarks had closed largely unchanged on Tuesday, as traders weighed the prospect of a supply surplus against OPEC+’s smaller-than-expected output hike for November.
“The market is in price limbo, with one side bent towards a possible supply glut and the other believing the ramp-up will not be as fast as anticipated,” said Emril Jamil, senior analyst at LSEG Oil Research.
Jamil noted that crude prices are being buoyed by traders holding long positions—bets that prices will rise further—amid continued efforts to curb Russian oil exports.
Over the weekend, OPEC+ agreed to raise production by 137,000 barrels per day, choosing the smallest increase among several proposals discussed.
“Until the physical market shows signs of softening via rising inventories, investors are likely to discount the impact of the production increases,” ANZ analysts said on Wednesday.
However, ANZ added that price gains are likely to remain limited as concerns over Russian supply disruptions have subsided, with the country’s crude exports staying near a 16-month high over the past month.
Attention now turns to upcoming U.S. inventory data from the Energy Information Administration (EIA), due later Wednesday. Preliminary data from the American Petroleum Institute (API) indicated that U.S. crude stockpiles rose by 2.78 million barrels in the week ending October 3, while gasoline and distillate inventories declined.
At the same time, the EIA said Tuesday that U.S. oil production is expected to set a new record this year—surpassing earlier projections and underscoring the continued strength of American output.
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