El WTI continúa bajo presión en torno a los 60 dólares, el aumento de producción de la OPEP+ es la principal fuente de presión

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Asia Trading Hours Wednesday Morning, WTI crude oil trades around $60, with the market focusing on the upcoming production adjustment decision. According to Reuters, OPEC+ is drafting a production increase plan for December, with four informed sources revealing progress in negotiations. The OPEC group is expected to agree on a daily production increase of 137,000 barrels in the decision on Sunday.

Inventories Show Improvement in Crude Oil Demand

The latest data released by the American Petroleum Institute(API) on Tuesday has stirred market ripples. As of the week ending October 24, US crude oil inventories decreased by 4 million barrels week-on-week, far exceeding the previous week’s decline of 2.98 million barrels. Year-to-date, US crude reserves have experienced a net outflow of 6.4 million barrels. According to Oilprice statistics, this reflects a relatively stable domestic energy demand.

Production Increase Expectations and Geopolitical Factors Intertwined

If the proposed OPEC+ production increase plan is finally confirmed, the group’s output target will be restored to 1.66 million barrels per day. Lipow Oil Associates chairman Andrew Lipow commented that this move could compensate for the production cuts caused by US sanctions on Russia. However, there is not yet a full consensus within the group on further expansion.

Federal Reserve Rate Cut May Become a New Price Variable

Traders are eyeing the Federal Reserve decision on Wednesday. The market generally expects the Fed to cut the federal funds target rate by 25 basis points in the October meeting, bringing the target range to 3.75%-4.00%. A rate cut usually boosts the dollar’s depreciation expectations, which directly lowers the cost of dollar-denominated crude oil and activates international buyers’ purchasing power, supporting WTI’s upward movement.

Meanwhile, the official inventory report from the Energy Information Administration(EIA) will also be released on Wednesday, becoming another key focus of the oil market that day. With multiple factors converging, whether WTI can hold the $60 level remains to be seen, making $60 the focal price level of the week.

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