By Gina Lee
Investing.com – Oil was up Tuesday morning in Asia, with the Organization of the Petroleum Exporting Countries (OPEC) fell short of its expected pace of output increases in October. China, on the other hand, increased operating rates to meet a spike in diesel demand.
Brent oil futures were up 0.28% to $84.95 by 10:30 PM ET (2:30 AM GMT) and WTI futures were up 0.24% to $84.25.
“Crude prices still seemed poised to head higher, with some traders waiting for confirmation after both the U.S. Energy Information Administration (EIA) crude oil inventory shows demand for most products are headed in the right direction, while U.S. production is stable and with OPEC+ sticking to their gradual 400,000 bpd increase plan,” OANDA senior analyst Edward Moya told Reuters.
The black liquid hit multi-year highs during the previous week, boosted by a post-COVID-19 demand rebound and OPEC and allies (OPEC+) sticking to gradual, monthly production increases of 400,000 barrels per day (bpd), even as major consumers call for more supply.
OPEC pumped 27.50 million bpd in October 2021, according to the Reuters survey. Although a rise of 190,000 bpd from the previous month, the figure remains below the 254,000-increase permitted under the OPEC+ supply deal. Higher supplies from producers such as Saudi Arabia and Iraq were offset by involuntary outages in some smaller producers.
The cartel’s next meeting is scheduled for Nov. 4.
In China, the world’s top oil importer, national oil firms ramped up refinery run rates in order to avert a diesel shortage. Investors now await U.S. crude oil supply data from the American Petroleum Institute, due later in the day.