Oil prices edged higher during Wednesday's Asian deals as markets began to discount oversupply concerns, following OPEC+’s decision to limit its planned November output increase.
By 3:15 pm AEDT (4:15 am GMT) Brent crude futures rose 51 cents or 0.8% to US$65.96 per barrel, while U.S. West Texas Intermediate crude gained 53 cents or 0.9% to $62.26.
Both benchmarks had settled largely unchanged in the previous session, as traders balanced signs of a potential supply glut against the cartel’s smaller-than-expected production increase.
OPEC+ agreed to raise output by just 137,000 barrels per day - the lowest figure among several options considered at the group’s weekend meeting.
“Until the physical market shows signs of softening via rising inventories, investors are likely to discount the impact of the production increases,” ANZ analysts said on Wednesday.
Traders are also awaiting the latest U.S. inventory data from the Energy Information Administration later on Wednesday.
Preliminary figures from the American Petroleum Institute showed U.S. crude stocks rose by 2.78 million barrels in the week ended October 3, above expectations of a 2.25 million barrel build, while gasoline and distillate inventories fell.
Meanwhile, the EIA said on Tuesday that U.S. oil production is on track to set a larger record this year than previously expected.
The agency now forecasts average production of 13.53 million barrels per day in 2025, up from an earlier estimate of 13.44 million.
