Select Language

WTI rises above $60.50, upside seems limited due to OPEC+ oversupply concerns

Breaking news

WTI rises above $60.50, upside seems limited due to OPEC+ oversupply concerns

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.10.03 14:38
WTI rises above $60.50, upside seems limited due to OPEC+ oversupply concerns

update 2025.10.03 14:38

  • WTI price rebounded from five-month low of $60.22 recorded on Thursday.
  • OPEC+ could lift production by as much as 500,000 barrels per day in November, tripling October's hike.
  • Crude Oil prices fell as US crude Oil inventories rose last week as refining activity and demand weakened.

West Texas Intermediate (WTI) Oil prices halts its four-day losing streak, rebounding from five-month low of $60.22 recorded on Thursday, trading around $60.70 per barrel during the Asian hours on Friday. However, crude Oil prices are on track for their third successive weekly decline amid market expectations of production increase by the Organization of the Petroleum Exporting Countries and allies, including Russia, known as OPEC+.

Reports suggested the OPEC+ may raise output by up to 500,000 barrels per day in November, tripling October's increase, as Saudi Arabia seeks to reclaim market share. Reuters cited Tony Sycamore, IG analyst, saying "If OPEC+ do go ahead and announce a 500,000 bpd increase this weekend, it's likely a big enough increase to send crude oil lower again, initially to support at $58.00, before a test of this year's lows $55.00 area."

Oil prices also faces challenged as Iraq's Kurdistan region resumed exports following a 2.5-year halt, adding supply to a market facing surplus risks. Under a new deal with Baghdad, the Kurdistan Regional Government, and international Oil firms will initially transport 180,000-190,000 barrels per day (bpd) to Turkey's Ceyhan port.

The Energy Information Administration (EIA) noted on Wednesday that United States (US) crude Oil, gasoline and distillate inventories gained last week as refining activity and demand softened. EIA Crude Oil stockpiles reported 1.792 million barrels stockpiles in the previous week, exceeding the market expectations of 1.5 million barrels.

The Oil demand will likely be affected due to concerns that a government shutdown will curtail economic activity in the United States, the world largest oil consumer. The shutdown is expected to extend until next week. Senate Democrats are poised to vote against a GOP-backed short-term funding bill again tomorrow, and the Senate is unlikely to meet this weekend.

WTI Oil FAQs

WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as "light" and "sweet" because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered "The Pipeline Crossroads of the World". It is a benchmark for the Oil market and WTI price is frequently quoted in the media.

Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa.

The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API's report is published every Tuesday and EIA's the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.

OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.


Date

Created

 : 2025.10.03

Update

Last updated

 : 2025.10.03

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

EUR/USD hovers at 1.1600 as muted CPI data fails to alter Fed stance

EUR/USD is poised to finish the week with losses of 0.21% yet it remains above the 1.16 figure for the third straight day, capped on the upside by key resistance levels after US data might not deter the Fed from cutting rates.
New
update2025.10.25 07:15

USD/CHF Price Forecast: Stays range-bound below 0.8000

The USD/CHF remains subdued on Friday, yet the pair trades below 0.8000 poised to finish the week with modest gains of over 0.25%. At the time of writing, the pair trades at 0.7956m, virtually unchanged.
New
update2025.10.25 05:18

Gold rebounds after softer US CPI data reinforces Fed cut bets

Gold price erases earlier losses, rises over 0.10% on Friday following the release of the September inflation report in the US, which showed that prices climbed but would not deter the Federal Reserve (Fed) from cutting rates next week.
New
update2025.10.25 04:07

AUD/USD holds steady as mixed US data keeps traders cautious

The Australian Dollar (AUD) is virtually unchanged against the US Dollar (USD) on Friday after volatile two-way price action driven by a mix of US macro data.
New
update2025.10.25 03:12

Dow Jones Industrial Average reaches new peak as US CPI inflation boosts rate cut bets

The Dow Jones Industrial Average (DJIA) lumbered into record highs on Friday, posting intraday bids north of 47,300 for the first time ever.
New
update2025.10.25 03:10

Silver price consolidates below $49 on Fed rate-cut outlook

Silver (XAG/USD) eases on Friday, trading around $48.85 per troy ounce at the time of writing, down 0.10% for the day, as the market consolidates below the psychological $49 level.
New
update2025.10.25 01:44

EUR/GBP jumps to four-week high as BoE dovish bets offset strong UK data

The EUR/GBP advances during the North American session, even though Retail Sales in the UK, exceeded estimates but a softer inflation reading increased the odds for further easing by the Bank of England. The cross trades at 0.8744, up 0.74% as it hits a four-week high.
New
update2025.10.25 01:25

USD/JPY extends gains as strong US PMI offsets softer CPI data

The Japanese Yen (JPY) remains under pressure against the US Dollar (USD) on Friday, with USD/JPY trading around 152.80, up for the sixth straight day.
New
update2025.10.25 00:06

GBP/USD holds steady post-volatile session on UK data, US inflation signals

GBP/USD trades sideways around 1.3325 on Friday at the time of writing, unchanged on the day after a volatile session triggered by multiple economic releases from the United Kingdom (UK) and the United States (US).
New
update2025.10.25 00:01

JPY soft and underperforming G10 in quiet trade - Scotiabank

The Japanese Yen (JPY) is soft, down 0.2% against the US Dollar (USD) and underperforming nearly all of the G10 currencies in overall quiet trade, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
New
update2025.10.24 23:54

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel