Oil prices steady despite OPEC+ plans to pause output increases
Oil prices were little changed despite news that OPEC+ plans to end its supply increases, with the market weighed down by fears of an oil supply glut and weak factory data in Asia.
Brent crude futures were down 1 cent, or 0.02%, at $64.76 a barrel by 1329 GMT. U.S. West Texas Intermediate crude was down 2 cents, or 0.03%, at $60.96.
The Organization of the Petroleum Exporting Countries and its allies, known collectively as OPEC+, agreed on Sunday to raise output by a small 137,000 barrels per day (bpd) in December and to pause increases in the first quarter of next year.
Brent and WTI both fell more than 2% in October, down for a third straight month and hitting a five-month low on October 20.
Last month the International Energy Agency said the global oil market faces a surplus next year of as much as 4 million bpd. OPEC, meanwhile, expects global oil supply and demand to balance next year.
The halt in quotas for the first quarter of next year does not affect the projected surplus, SEB analysts said in a note.
"But it shows that OPEC+ hasn't forgotten about the price. It still cares about price. It tells us that 2026 won't be a bloodbath or graveyard for oil," they added.
Meanwhile, European oil CEOs at a conference in Abu Dhabi cautioned against being too bearish on oil next year.
RBC said that Russia remains a key supply wild card after U.S. sanctions on Russian producers Rosneft and Lukoil as well as attacks on the country's energy infrastructure resulting from the war in Ukraine.
A Ukrainian drone attack struck Tuapse on Sunday, one of Russia's main Black Sea oil ports, causing a fire and damaging at least one ship.
Source: Reuters.com
