Oil prices: A group of nations that are part of the OPEC+ alliance of oil-exporting countries have agreed to a small boost in oil production, citing a steady global economic outlook.
OPEC+ Decision Sparks Activity
As a result, oil-linked stocks, including upstream companies like Oil India and ONGC, and oil marketing companies (OMCs) like Indian Oil Corporation (IOCL), BPCL, and HPCL, expect to trade actively on Monday, October 6.
After the OPEC+ decision, it is anticipated that other crude-sensitive stocks, such as paints, tires, and aviation, would continue to be monitored.
Following a virtual meeting on Sunday, the organization stated that it will increase oil output by 137,000 barrels per day in November, the same amount it had previously promised for October, according to AP.
OPEC+ Cites Strong Outlook
After declaring cutbacks in 2023 and 2024, the firm has been gradually increasing production throughout the year.
The organization stated in a statement that “a solid global economic outlook and existing robust market fundamentals” were the reasons for the action. It also said that when market circumstances change, the production changes can be put on hold or even reversed.
Russia is the main non-OPEC member in the 22-nation alliance, while Saudi Arabia is the major member of the OPEC producers’ cartel, giving it considerable power in OPEC+.
The group that convened on Sunday included Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman. November 2 is the date of their next meeting.
October 6 oil prices
Early Monday trading saw a 1% gain in oil prices as OPEC+ tempered some fears about supply increases by announcing a more modest monthly increase in output than anticipated.
By 2310 GMT, U.S. West Texas Intermediate oil was up 58 cents, or 1%, to $61.46, while Brent crude futures had up 63 cents, or 1%, to $65.16 a barrel, according to Reuters.
Reuters quoted independent analyst Tina Teng as saying, “OPEC+’s decision for a lower-than-expected output raise next month as the group wanted to cushion the current drop in oil markets has largely bolstered the price surge.”