WTI edges higher above $61.50 on OPEC+ output hike, geopolitical risks

• WTI price holds positive ground near $61.80 in Tuesday's early European session.
• OPEC+ agreed to raise oil output by 137,000 barrels per day from November. 
• Concerns over potential supply disruptions following recent Ukrainian attacks on Russian energy infrastructure boost the WTI price. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $61.80 during the early European trading hours on Tuesday. The WTI extends the rally as the Organization of the Petroleum Exporting Countries and its allies (OPEC+) agreed to a smaller-than-expected hike in its crude production levels, easing some fears of a growing supply glut.

OPEC+ will raise oil output from November by 137,000 barrels per day (bpd), below market expectations of as much as a 500,000 bpd boost to production. The group has increased its oil output targets by more than 2.7 million bpd this year, accounting for over 2.5% of world demand.

Geopolitical risks might contribute to the WTI's upside. The ongoing Russia-Ukraine conflict has created uncertainty over Russian crude supply, adding a risk premium to the market. Reuters reported on Tuesday that Russia's Kirishi oil refinery halted its most productive distillation unit, CDU-6, following a drone attack and subsequent fire on October 4. The recovery process is expected to take around one month.

Meanwhile, the US government shutdown entered its seventh day as US Senators failed to pass spending proposals to reopen the federal government. This has led to fears over a major economic impact on the US. Additionally, any slowdown in demand due to weak economic growth triggered by US trade tariffs is likely to exacerbate the surplus and undermine the WTI price.