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Qatar Tribune
3 hours ago
- Business
- Qatar Tribune
Oil jumps after OPEC+ sticks to same output hike in July
Agencies Singapore Oil prices rebounded more than $1 a barrel on Monday after producer group OPEC+ decided to increase output in July by the same amount as it did in each of the prior two months, which came as a relief to those who expected a bigger increase. Brent crude futures climbed $1.46, or 2.33 percent, to $64.24 a barrel by 9.26 am Saudi time after settling 0.9 percent lower on Friday. US West Texas Intermediate crude was at $62.45 a barrel, up $1.66, or 2.73 percent, following a 0.3 percent decline in the previous session. Both contracts were down more than 1 percent last week. The Organization of the Petroleum Exporting Countries and their allies decided on Saturday to raise output by 411,000 barrels per day in July, the third month the group known as OPEC+ increased by the same amount, as it looks to wrestle back market share and punish over-producers. The group had been expected to discuss a bigger production hike. 'Had they gone through with a surprise larger amount, then Monday's price open would have been pretty ugly indeed,' analyst Harry Tchilinguirian of Onyx Capital Group wrote on LinkedIn. Oil traders said the 411,000-bpd output hike had already been priced into Brent and WTI futures. 'The headline motive has centered on punishing OPEC+ members like Iraq and Kazakhstan that have persistently produced above their pledged quotas,' said the Commonwealth Bank of Australia in a note on Monday. Kazakhstan has informed OPEC that it does not intend to reduce its oil production, according to a Thursday report by Russia's Interfax news agency citing Kazakhstan's deputyenergy minister. Looking ahead, Goldman Sachs analysts anticipate OPEC+ will implement a final 410,000 bpd production increase in August. 'Relatively tight spot oil fundamentals, beats in hard global activity data, and seasonal summer support to oil demand suggest that the expected demand slowdown is unlikely to be sharp enough to stop raising production when deciding on August production levels on July 6th,' the bank said in a note dated Sunday. Meanwhile, low levels of US fuel inventories have stoked supply jitters ahead of expectations for an above-average hurricane season, analysts said. 'More encouraging was a huge spike in gasoline implied demand going into what's considered the start of the US driving season,' ANZ analysts said in a note, adding that the gain of nearly 1 million bpd was the third-highest weekly increase in the last three years. Traders are also closely watching the impact of lower prices on US crude production which hit an all-time high of 13.49 million bpd in March. Last week, the number of operating oil rigs in the US fell for a fifth week, down four to 461, the lowest since November 2021, Baker Hughes said in its weekly report on Friday.
Business Recorder
10 hours ago
- Business
- Business Recorder
Oil leaps 4% after OPEC+ keeps output increase unchanged
LONDON: Oil prices jumped by about 4% on Monday after producer group OPEC+ kept output increases in July at the same level as the previous two months. Brent crude futures climbed by $2.28, or 3.6%, to $65.06 a barrel by 1335 GMT. U.S. West Texas Intermediate crude was up $2.99, or 4.9%, at $63.78. Both contracts lost more than 1% last week. The Organization of the Petroleum Exporting Countries and its allies, known collectively as OPEC+, decided on Saturday to raise output by 411,000 barrels per day (bpd) in July, the third consecutive monthly increase of that amount, as it looks to wrestle back market share and punish members that have produced more than their quotas. Sources familiar with OPEC+ talks said on Friday that the group could discuss an even larger increase. Oil traders said the 411,000 bpd increase had already been priced in to Brent and WTI futures. Oil prices fall on demand concerns in volatile session 'Had they gone through with a surprise larger amount, then Monday's price open would have been pretty ugly indeed,' Onyx Capital Group analyst Harry Tchilinguirian wrote on LinkedIn. Kazakhstan has informed OPEC that it does not intend to reduce oil production, Russia's Interfax news agency reported on Thursday, citing Kazakhstan's deputy energy minister. Oil prices would need to fall to $58 a barrel or lower to make it unprofitable for Kazakhstan to overproduce its quota, said Bjarne Schieldrop, SEB's chief commodities analyst. Goldman Sachs analysts expect OPEC+ to implement a final 410,000 bpd production increase in August. 'Relatively tight spot oil fundamentals, beats in hard global activity data and seasonal summer support to oil demand suggest that the expected demand slowdown is unlikely to be sharp enough to stop raising production when deciding on August production levels on July 6,' the bank said in a note. Morgan Stanley analysts also said they expect 411,000 bpd to be added back each month up to a total of 2.2 million bpd by October. 'With this latest announcement, there is little sign that the pace of quota increases is slowing,' the bank's analysts said. Prices were also supported by the increased geopolitical risk premium after Ukrainian drone strikes against Russia over the weekend, said Rystad Energy's Jorge Leon.
Saba Yemen
14 hours ago
- Business
- Saba Yemen
Oil prices rise after OPEC+ decision to increase production in July
Singapore - (Saba): Oil prices rose by more than $1 a barrel in early Asian trading after the OPEC+ group decided to increase production in July by the same amount it increased in each of the previous two months, in line with market expectations. Brent crude futures rose $1.06, or 1.69%, to $63.84 a barrel, while US West Texas Intermediate crude rose $1.16, or 1.91%, to $61.95 a barrel. OPEC+ decided on Saturday to increase production by 411,000 barrels per day in July compared to the production level requested in June 2025, equivalent to three monthly increases. Whatsapp Telegram Email Print
The Star
15 hours ago
- Business
- The Star
Oil jumps 3% after OPEC+ keeps output increase unchanged
SINGAPORE (Reuters): Oil prices jumped by about 3% on Monday after producer group OPEC+ kept output increases in July at the same level as the previous two months. Brent crude futures climbed by $1.74, or 2.77%, to US$64.52 a barrel by 0827 GMT. U.S. West Texas Intermediate crude was up $1.94, or 3.19%, at US$62.73. Both contracts lost more than 1% last week. The Organization of the Petroleum Exporting Countries and its allies, known collectively as OPEC+, decided on Saturday to raise output by 411,000 barrels per day (bpd) in July, the third consecutive monthly increase of that amount, as it looks to wrestle back market share and punish members that have produced more than their quotas. Sources familiar with OPEC+ talks said on Friday that the group could discuss an even larger increase. Oil traders said the 411,000 bpd increase had already been priced in to Brent and WTI futures. "Had they gone through with a surprise larger amount, then Monday's price open would have been pretty ugly indeed," Onyx Capital Group analyst Harry Tchilinguirian wrote on LinkedIn. Kazakhstan has informed OPEC that it does not intend to reduce oil production, Russia's Interfax news agency reported on Thursday, citing Kazakhstan's deputy energy minister. "Given the circumstances of a loss in market share and the almost too honest admission from Kazakhstan that it would not cut output, there does seem little choice," PVM analyst John Evans said of the OPEC+ decision. Goldman Sachs analysts expect OPEC+ to implement a final 410,000 bpd production increase in August. "Relatively tight spot oil fundamentals, beats in hard global activity data and seasonal summer support to oil demand suggest that the expected demand slowdown is unlikely to be sharp enough to stop raising production when deciding on August production levels on July 6," the bank said in a note. Meanwhile, low U.S. fuel inventories have stoked supply jitters ahead of what is expected to be a more active than usual hurricane season, analysts said. "More encouraging was a huge spike in gasoline implied demand going into what's considered the start of the U.S. driving season," ANZ analysts said in a note, adding that the gain of nearly 1 million bpd was the third-highest weekly increase in the past three years. (Reporting by Robert Harvey in London and Florence Tan and Michele Pek in Singapore Editing by David Goodman) - Reuters
The Star
3 days ago
- Business
- The Star
Oil settles down on possible Opec+ output hike
Brent crude futures settled down 25 cents, or 0.39%, at US$63.90 a barrel. US West Texas Intermediate crude finished down 15 cents, or 0.25%, at US$60.79 a barrel. HOUSTON: US crude futures fell on Friday as traders expected Opec+ would decide on Saturday to boost oil output for July beyond previous forecasts. Brent crude futures settled down 25 cents, or 0.39%, at US$63.90 a barrel. US West Texas Intermediate crude finished down 15 cents, or 0.25%, at US$60.79 a barrel, having earlier dropped more than US$1 a barrel.
