WTI extends upside to near $62.00 as OPEC+ signals cautious production hike

• WTI price trades in positive territory for the fourth consecutive day near $61.95 in Wednesday's early European session.
• OPEC+ approved a modest increase of 137,000 barrels per day for November.
• US crude inventories climbed by 2.78 million barrels last week, the API noted. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $61.95 during the early European trading hours on Wednesday. The WTI extends the rally after the Organization of the Petroleum Exporting Countries and its allies (OPEC+) opt for a modest production increase. Traders await the release of the US Energy Information Administration (EIA) stockpiles report later on Wednesday. 

OPEC+ approved a smaller-than-expected rise in its crude production levels, easing some fears of a growing supply glut. The group 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. 

About the data, the American Petroleum Institute (API) reported on Tuesday that crude oil stockpiles in the US for the week ending October 3 rose by 2.78 million barrels compared to a fall of 3.674 million barrels in the previous week. Analysts estimated that stocks would increase by 2.25 million barrels. So far this year, net crude oil inventories have risen by just 557,000 barrels, according to Oilprice calculations of API data.  

Traders will closely monitor the FOMC Minutes later on Wednesday for more cues about the US interest rate outlook. Also, the Federal Reserve officials are set to speak later on the same day, including Alberto Musalem,  Michael Barr, Austan Goolsbee, Lorie Logan and Neel Kashkari. Any hawkish remarks from Fed policymakers could lift the US Dollar (USD) and weigh on the USD-denominated commodity price in the near term.