Oil prices rise after OPEC+ decision to limit output

Oil prices rose about 1% on the afternoon of October 8, as investors no longer worried about oversupply after the Organization of the Petroleum Exporting Countries (OPEC) and major producers outside the bloc (collectively known as OPEC+) decided to limit production increases next month.

A Russian oil refinery. Photo: TheMoscowtimes.com/TTXVN

Specifically, Brent crude oil price increased by 63 US cents (0.96%) to 66.08 USD/barrel at 2:15 p.m. (Vietnam time). US light sweet crude oil (WTI) price also increased by 66 US cents (1.07%) to 62.39 USD/barrel.

Emril Jamil, senior analyst at LSEG Oil Research, said the market was caught in a state of price uncertainty, with one side concerned about the risk of oversupply and the other believing that production increases would not happen as quickly as expected. He said the rise in oil prices was mainly due to some traders holding on to long positions in the expectation that prices would continue to rise, especially due to supply restrictions from Russia.

OPEC+ has decided to increase production by 137,000 barrels per day from next November, the lowest level of the options the group discussed over the weekend.

ANZ analysts said investors remain cautious about the production increase and may only react significantly if the market shows signs of weakness, such as rising oil inventories. However, the oil rally is being hampered by easing concerns about potential disruptions to Russian supplies. Over the past four weeks, Russian crude exports have remained near a 16-month high.

Investors are also awaiting the release of US oil data from the US Energy Information Administration (EIA) later today. The American Petroleum Institute (API) said on October 7 that US crude oil inventories rose by 2.78 million barrels in the week ended October 3. In contrast, gasoline and distillate inventories fell.

Meanwhile, the EIA said the country's oil production this year could exceed its previously forecast record.

Source: https://baotintuc.vn/thi-truong-tien-te/gia-dau-tang-sau-quyet-dinh-han-che-san-luong-cua-opec-20251008162954743.htm