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WTI crude oil for October delivery was last seen trading at $ 1.64 (or 2.58%) to $ 61.84 per barrel.
Traders are laser-centered on the upcoming OPEC+ meeting on Sunday, where the eight members-the nation coalitions are probably planned to push for high production in October. Any increase will follow their 2.2 million barrels per day in 2025 per day for the expansion of production. A vertical growth can lead to oversupply in the market and weight at oil prices.
Last month, Alliance approved an increase of 547,000 barrels per day for September to return the offline from 2023 to 2.2 million barrels per day.
According to a Bloomberg survey, OPEC produced 28.55 million barrels of crude oil per day in August; 400,000 barrels per day compared to last month.
While Saudi Arabia produced less than consent in July and August, the production by OPEC countries exceeded their agreed level with 340,000 barrels per day.
On the Inventory Front, yesterday the US Energy Information Administration reported that the oil stockpiles in the US increased 2.415 million barrels of barrels of 1.80 million barrels.
Rising oil inventory indicates a slowdown in the demand for energy, resulting in a fall in the price of oil.
The US Jobs data released by the Labor Department revealed an increase in non-agricultural payroll employment in just 22,000 jobs in August after amending 79,000 jobs in July. The unemployment rate rose from the previous 4.2% to 4.3%.
On the monetary front, the next monetary policy meeting of the US Federal Reserve is to be held in September 16–17 to decide on interest rates. With the current benchmark rate being determined from 4.25% to 4.50%, today’s weak job data has strongly promoted the expectations of interest rate cuts.
On the geo -political front, the conflict between Russia and Ukraine is showing no signal of ending the US and West due to the intervention of the West due to intervention. Russia is potentially facing heavy sanctions on its oil exports by the US as it has ignored the call for the ceasefire.
The idea and opinion expressed here are the idea and opinion of the author and not necessarily Nasdac, Inc.
