,
WTI crude oil for November delivery was last seen trading at $ 0.60 (or 0.96%) to $ 61.77 per barrel.
OPEC+ Alliance allegedly plans to increase production from 274,000 to 411,000 BPD in November. Since the number of October is two to three times higher than the increase in October, oversupi’s concerns have come to light.
Bloomberg News reported that cartel production may accelerate production as 500,000 BPD. However, OPEC has rejected the report, called it “wrong and misleading”.
On Saturday, after a gap of nearly two and a half years, Iraq exported crude oil to Turkey via a pipeline from the semi-autonomous Kurdistan region in North Iraq.
Meanwhile, in Europe, Russia curb its oil exports due to targeting major oil refineries on Russia after the last week’s Ukrainian drone attacks, Russia launched a large size an aerial attack on Ukraine with drones and missiles. Ukraine has requested US military aid.
US Vice President JD Vance said US President Donald Trump would make a final call.
After Russia recently violated the European airspace, European leader has come up with a plan to create a “drone wall” by Russia to protect the continent from any such future infiltration.
Traders feel that the continuous rejection of peace proposals to end their war with Russia’s Ukraine may result in heavy restrictions on their Arab-dollar oil exports by the US and West, affecting the supply chain.
Israel has come up with an American-backed peace proposal to end the Israeli-Pilstinian war. However, Hamas’s attitude is not clear even then, while Israel warned that if Hamas rejects the proposal, Israel would be the way.
Oil transit will become more secure if peace returns to Gaza as it will remove a sufficient risk premium.
In addition, the US government has entered a shutdown after Republican and Democrats failed to reach a deal to approve a short -term funding bill, which would have allowed the government to continue to work. To get out of jobs for many workers, concerns about the resulting increase in unemployment have increased.
Economists are concerned that a long stay in administrative activities due to lack of employees can soften the consumption and demand of oil and energy and therefore can weigh weight on oil prices.
Bank of America estimates that the shutdown can trim the US GDP with 0.1 percentage points each week.
In addition, the shutdown deprives markets of official data that guides trading. Without reports of jobs and inflation, oil market demand can struggle to check the expectations of growth.
The data released by the American Petroleum Institute has shown that the US crude oil inventions for the week ended on September 26, after the decline of 3.821 million-market in the previous week, declined by 3.674 million barrels.
For the week ended on 26 September, the US Energy Information Administration data revealed to heat 1.79 million barrels in crude oil shares, gasoline stock 4.125 million barrels, 578,000 barrels, distilled stock by 578,000 barrels, and heating oil shares from 187,000 barrels.
Separately, ADP data for jobs today showed that private businesses in the US cut 32,000 jobs in September, defying an increase of 50,000.
The idea and opinion expressed here are the idea and opinion of the author and not necessarily Nasdac, Inc.
