OPEC+ agrees to second straight hike of 137,000 bpd

SECAUCUS, NJ (DTN) – Eight key member countries of oil producing alliance OPEC+ have agreed on a joint production hike of 137,000 bpd for November, the same as in October, to attempt a larger market share for their exports.

The agreement was made during a virtual meeting on Sunday (10/5) among Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria and Oman who are part of the 22-nation alliance of oil producers known as OPEC+.

The group of eight later issued a statement saying the increase was in response to “a steady global economic outlook and current healthy market fundamentals.”

Production adjustments may be paused or reversed hereon depending on market conditions, the statement added.

Oil futures rebounded in Monday’s (10/6) trading on the news, after hitting four-month lows last week on concerns that OPEC might opt for a much larger hike and add to existing surplus of supply in the market.

Prior to the increase, the market was inundated with news that some 200,000 bpd of crude flows had resumed from Kurdistan, Iraq, after being suspended since 2023.

In latest trading, NYMEX-traded WTI for November delivery rose $0.74, or 0.7%, to $61.62 bbl. Last week, it fell to $60.42, its lowest since June 6.

ICE Brent for December delivery inched up $0.69 to $65.22 bbl.

Among oil products, November RBOB gasoline futures gained $0.0234 to $1.8829 gallon. The front-month ULSD contract climbed $0.0105 to $2.2468 gallon.