© Reuters.
By Barani Krishnan
Investing.com – Oil had its best month in three for September, gaining almost 10%, with even producers in OPEC+ presumably emboldened enough to consider a higher output in coming months than they initially planned.
New York-traded West Texas Intermediate, the benchmark for U.S. oil, settled September’s last trading day at $75.03 per barrel, up 20 cents on the day or 0.3%. For the month itself, WTI gained 9.5%, its most since June. For the third quarter, it rose 2%.
London-traded Brent crude, the global benchmark for oil, finished Thursday’s session at $78.52 per barrel, down 12 cents or 0.2%. For September, Brent gained 7.6%, almost its most since June. For the third quarter, it rose 4.5%.
“OPEC+ could easily justify delivering more than the gradual 400,000 bpd increase in November and they probably should consider doing so,” Ed Moya, analyst at online trading platform OANDA.
“OPEC+ has resisted caving into President Biden’s demands over the summer, but this time is different. The energy crunch could trigger massive volatility and dampen global growth prospects, so OPEC+ should consider a tweak next week.”
OPEC+ — comprising the 13-member Saudi-led Organization of the Petroleum Exporting Countries and a group of 10 other producers steered by Russia — is considering going beyond its existing deal to boost production by 400,000 barrels per day when it meets next week, four sources familiar with the alliance’s thinking were reported saying.
The move was against a backdrop of a near three-year high in oil prices and pressure from consumers for more supply, the sources said.
Source: Investing.com
