Crude Prices Continue Upward Momentum

Highlights:

• Brent crude at $65.70 and WTI at $61.90 a barrel at the time of writing, both up over 0.3%.
• OPEC+ to increase output by 137,000 barrels per day in November, below expectations.
• Concerns over a potential supply glut remain a key factor for future oil price movements.

Oil prices rose for a second consecutive session after a smaller-than-expected production increase by the Organization of the Petroleum Exporting Countries and its allies (OPEC+) eased concerns over a potential supply glut. Brent crude futures gained 23 cents, or 0.35%, to $65.70 a barrel at the time of writing, while U.S. West Texas Intermediate (WTI) crude rose 21 cents, or 0.34%, to $61.90 a barrel. Both benchmarks had closed more than 1% higher in the previous session, buoyed by the announcement.

OPEC+ Maintains Measured Supply Strategy

OPEC+, which includes OPEC member nations, Russia, and other allied producers, announced it would raise collective output by 137,000 barrels per day starting in November. The modest hike came in below market expectations, signalling that the group remains cautious about oversupplying the market.

Analysts noted that the restrained increase helped support prices, as traders had feared a more aggressive production boost that could have pressured oil markets.

Market Balances Supply and Demand Concerns

Despite the upward momentum, analysts caution that persistent worries about global oversupply and slowing demand growth could limit further gains. Investors are closely watching for any adjustments to OPEC+ policy in the coming months, as well as economic signals that might influence consumption trends.

Outlook

The latest price movement underscores how sensitive the oil market remains to OPEC+ decisions. While the modest production hike helped stabilise sentiment, the long-term trajectory of crude prices will depend on how well global supply aligns with fluctuating demand.

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