FX.co ★ Oil Rises as OPEC+ Opts for Modest Output Hike

WTI crude oil futures rose by 1.3%, reaching $61.7 per barrel on Monday. This increase followed OPEC+'s decision to implement a smaller-than-anticipated production hike, alleviating concerns about a significant supply surge. The alliance, which comprises major players such as Saudi Arabia and Russia, announced it would raise output by 137,000 barrels per day in November, mirroring the increase seen in October. This decision was made despite earlier predictions of a more substantial augmentation. The cautious adjustment reflected internal differing perspectives, with Russia advocating for limited increases to stabilize prices and Saudi Arabia favoring a more robust output boost to regain market share. Market prices received additional support from reports of a fire and drone attack that disrupted operations at Russia's Kirishi refinery, intensifying fears of potential supply interruptions. Nevertheless, experts cautioned that ongoing weak demand fundamentals, a rise in exports from the Middle East, and forecasts of an oversupplied market until 2026 might restrict further price gains.