OPEC+ has been gradually easing supply restrictions in recent quarters in an effort to regain market share. The cartel initially agreed to restore part of the 2.2 million barrels per day of production cuts.
Oil prices are rising, though less than experts had anticipated, following the Organization of the Petroleum Exporting Countries and its allies (OPEC+) decision over the weekend to increase output by 137,000 barrels per day in November.
Around 8:00 a.m. in Luanda, Brent crude — the benchmark for Angolan exports — was up 1.2%, trading at USD 65.25 per barrel. Meanwhile, WTI crude rose 1.15% to USD 61.58 per barrel.
This is a modest increase relative to annual production levels and marks the eighth consecutive upward revision, which helped ease some concerns about oversupply. However, weak demand prospects will likely cap short-term gains.
OPEC+ has been progressively relaxing its supply cuts over the past few quarters as part of its strategy to reclaim market share. The group had agreed to reinstate a portion of the 2.2 million barrels per day in output, but actual production increases have fallen short of those targets.
According to Reuters, in the short term, some analysts expect that the upcoming refinery maintenance season in the Middle East — which will temporarily halt some operations — could help limit price increases.
Source: Expansão
