Oil Prices Edge Higher Amidst OPEC+ Plan to Hike Output
Prices of crude oil surged in the global commodity market on Monday as demand and supply uncertainties persisted. Prices increased as OPEC+ revealed a plan to boost output by 137,000 barrels per day in November.
Brent crude was trading at $65.34 per barrel, up 1.6% from the previous close of $64.28. The US benchmark West Texas Intermediate (WTI) increased by 1.7% to $61.54 from $60.51 in the prior session.
Signs of weakness in the US labor market reinforced dovish expectations for the Fed, helping to sustain risk appetite in global markets.
Analysts noted that last week’s private-sector employment data supported the case for Fed rate cuts but cautioned that the absence of upcoming inflation data could increase uncertainty around the Fed’s policy outlook.
The Bureau of Labor Statistics (BLS) did not release weekly jobless claims data or the September non-farm payrolls report last week, due to the government shutdown that began on October 1, after the US Congress failed to agree on a temporary budget,
Lower rates are expected to boost growth and lift demand in oil-reliant sectors, supporting prices, analysts said. Escalating geopolitical risks also added pressure to prices amid fears of potential supply disruptions.
Ukraine reported on Sunday that at least five people were killed and 16 others injured in an overnight Russian airstrike targeting the western Lviv and southeastern Zaporizhzhia regions.
The country’s State Emergency Service said the attack lasted over five hours, with emergency services working continuously at the sites.
Zaporizhzhia Governor Ivan Fedorov reported one death and 10 injuries in his region, along with power outages and damage to infrastructure, including eight apartment buildings.
The Energy Ministry said Ukrainian energy facilities were also targeted, notably in Zaporizhzhia, adding that the situation in Sumy and Chernihiv regions remains difficult.
The Russian Defense Ministry later stated it launched a mass strike on Ukrainian military-industrial complexes and energy infrastructure, claiming all designated targets were hit.
Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, tempered upward momentum in oil prices by announcing a production increase in line with forecasts for November.
Eight member countries agreed to raise output by 137,000 barrels per day, easing concerns over potential supply shortages and exerting downward pressure on prices. OPEC+’s next meeting is scheduled for November 2. Dollar Switches to Defend Position amidst U.S Shutdown Risks
