WTI recovers above $62.00 as OPEC+ agrees to raise output at a slower pace from October
WTI price recovers some lost ground to near $62.15 in Monday’s Asian session.
OPEC+ agreed to lift output from October by 137,000 bpd.
Trump said he is not happy with the Russia-Ukraine situation.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $62.15 during the early Asian trading hours on Monday. The WTI edges higher, snapping the three-day losing streak after the Organization of the Petroleum Exporting Countries and its allies (OPEC+) agreed over the weekend to raise output at a slower pace from October on expectations of weaker global demand.
Bloomberg reported on Sunday that OPEC+ has agreed to further raise oil production from October as its leader, Saudi Arabia, pushes to regain market share. The group agreed to raise output by 137,000 barrels per day, down sharply from the larger hikes of recent months due to an anticipated weakening of global demand.
"The oil market rebounded slightly, supported by relief over OPEC+'s modest output hike and a technical bounce following last week's decline," said Toshitaka Tazawa, an analyst at Fujitomi Securities.
Additionally, the escalating tensions between Russia and Ukraine boost the WTI price. Ukrainian officials said on Sunday that Russia carried out its largest air attack of the war on Ukraine, setting the main government building on fire in central Kyiv and killing at least four people, including an infant.
US President Donald Trump said on Sunday that individual European leaders would visit the United States (US) on Monday or Tuesday to discuss how to resolve the Russia-Ukraine war. Trump added that he was "not happy" about the status of the Russia-Ukraine war but expressed optimism that the war would soon be settled.
Oil traders brace for the American Petroleum Institute (API) weekly crude oil stock report, which is due later on Tuesday. If the data shows an unexpected rise in crude inventories, this could indicate weaker demand and might weigh on the WTI price.
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