OPEC+ Fuels Oil Market Anxiety
Global oil prices are poised to post their biggest weekly decline since late June, ahead of a crucial OPEC+ meeting on Sunday. This meeting is expected to discuss increasing previously withheld oil supplies, fueling concerns about a global oversupply. Although Brent crude prices briefly rose to near $65 per barrel on Friday, they are still down around 8% throughout the week. Meanwhile, West Texas Intermediate (WTI) crude is trading around $61 per barrel.
Analysts predict that OPEC+ could accelerate production increases for November, as part of an effort to regain global market share. Early signs of oversupply are already emerging, particularly in the Middle East. The International Energy Agency (IEA) even estimates that the global oil surplus could reach a record high next year due to the return of OPEC+ supplies. Several major Wall Street banks even predict that Brent prices could fall to around $50 per barrel.
However, some market participants believe that the potential for an OPEC+ production increase has been anticipated by the market since the beginning of the week. According to Chris Weston of the Pepperstone Group in Melbourne, many investors have begun buying back and are net-long. According to a Bloomberg survey, OPEC increased production by 400,000 barrels per day in September, with Saudi Arabia matching supply precisely to its agreed quota. JPMorgan also noted that September may be a turning point, with the oil market now moving towards a large surplus. (ads)
Source: Newsmaker.id
