Oil rises again after two days of heavy losses.. investors await "OPEC+" decision
Oil markets saw a noticeable improvement in trading on Wednesday, with buyers returning after two days of sharp declines, as investors awaited potential decisions from the "OPEC+" alliance regarding production increases, while continuously monitoring the implications of the U.S. government shutdown on the economy and fuel demand.
Brent crude futures rose by 0.4% to reach $66.30 per barrel, while West Texas Intermediate crude also increased by the same percentage to $62.63 per barrel.
This recovery comes after two days of significant losses, as both crude types recorded on Monday the largest daily drop since August 1, exceeding 3% at settlement, continuing the decline on Tuesday with an additional 1.5% drop for each.
Estimates from the American Petroleum Institute regarding a decrease in crude inventories contributed to supporting prices and limiting further declines. Market sources reported that U.S. crude inventories fell by about 3.67 million barrels during the week ending September 26, while gasoline inventories rose by 1.3 million barrels, and distillate stocks increased by three million barrels.
In a related context, three informed sources reported that the "OPEC+" alliance may agree in its next meeting to increase crude production by up to 500,000 barrels per day in November, which is three times the increase approved in October, as Saudi Arabia seeks to regain its market share.
Two sources indicated that eight members of the alliance, which pumps about half of the world's oil production, are considering an increase ranging between 274,000 and 411,000 barrels per day, while a third source suggested that the increase could reach 500,000 barrels.
In response to these reports, "OPEC" denied through a post on the "X" platform the accuracy of news regarding plans to raise production by 500,000 barrels per day, describing them as "misleading," which adds further uncertainty to market expectations and keeps investors on alert.
