OPEC Reaches Deal to Raise Oil Output From July Onward – OPEC Is Said to Have Deal in Principle With Iran for Output Hike – West Texas Intermediate (WTI), futures on NYMEX, finds a temporary support near $62.00 during Wednesday’s Asian session after sliding almost 4.40% in last two trading days. The Oil price gets a provisional relief after the OPEC+ denied speculation regarding the announcement of a multi-fold hike in Oil production in its upcoming meeting on Sunday.
A report from Bloomberg stated on Tuesday that the Oil cartel is aiming to accelerate the rollback of production cuts, started earlier this year, through increasing supply by 500K million barrels per day (bpd) from November, the pace is somewhat four times faster than the current increase of 137,000 starting in October.
The scenario in which the OPEC+ increases its production is unfavourable for the Oil price.
Meanwhile, mounting risks of a United States (US) government shutdown have also weighed on the Oil price, assuming that the potential closure of the federal government could slow down public spending. This could lead to a decline in the overall Oil demand.
Till now, Republicans have failed to persuade Democrats to support the stopgap bill in the House of Senate, citing that their demands cannot be fulfilled.
In Wednesday’s session, investors will focus on the US Energy Information Administration (EIA) crude Oil stockpiles data for the week ending September 26, which will be published at 14:30 GMT.