WASHINGTON (dpa-AFX) - Crude oil advanced on Friday amid U.S. dollar weakness despite oversupply concerns triggered by OPEC+'s reported plans to increase production and the resumption of Iraqi oil exports.
WTI Crude Oil for November delivery was last seen trading up by $0.41 (or 0.68%) at $60.89 per barrel.
In the U.S., the government shutdown entered its third day today. Around 750,000 workers have been furloughed, with many potentially not being being reinstated. As a result, economic data vital for commodity markets shall not be released.
Based on private jobs data that showed weakening momentum in hiring in the U.S., investors are expecting additional U.S. Federal Reserve rate cuts in October and December.
The U.S. dollar index was last seen trading at 97.76, down by 0.06%.
Oversupply concerns are increasing, with a potential OPEC+ production increase of up to 500,000 barrels per day in November in the offing contrary to initial reports that suggested an increase of only up to 137,000 bpd. OPEC, however, has rejected the reports, calling them 'misleading.'
If the cartel approves a 500,000 bpd increase at its upcoming Sunday meeting, it would in effect, be triple the increase in October, which could lead to massive volume growth.
Last month, the cartel approved adding about 137,000 bpd in October, citing steady global economic outlook and healthy market fundamentals.
Recently, Kuwait's oil minister suggested that robust global demand conditions could justify meaningful production increases. Kuwait's position is seen as mirroring OPEC+ strategy that the current global economic scenario can soak in excess barrels without a price drop.
Recent data revealed that OPEC's output has already increased by approximately 330,000 bpd in September.
In the U.S., on Wednesday, the Energy Information Administration reported that crude oil inventories climbed by 1.79 million barrels for the week ending September 26 on tepid demand and refining activity.
Data released by Baker Hughes today revealed that crude oil rigs in the U.S. decreased to 422 in October from 424 of the previous week.
Last week, following a tripartite agreement between Iraq, the Kurdistan Regional Government, and international oil companies, Iraq restarted its oil exports from the semi-autonomous Kurdistan region to Turkey via Kirkuk-Ceyhan pipeline.
Iraq's resumption was pressured by U.S. President Donald Trump, who wants to nullify Iranian oil exports. Trump's administration is working to ensure the continuation of this oil trade permanently.
According to Iraqi state oil marketer SOMO, Iraq is aiming for 400,000 to 500,000 barrels per day by 2026.
Meanwhile, despite an ultimatum, militant group Hamas has not responded to the 20-point Gaza Peace Plan introduced by Trump to end the Israel-Palestine war.
A critical component of the deal involves the disarmament and surrender of Hamas. Tired of the drawn out war, Saudi Arabia, Qatar, the UAE, and Turkey are pressuring the group to accept the proposal.
A peace in the Middle East is expected to streamline and secure oil trade.
Analysts feel that the unfolding of events in the coming weeks, geopolitically and economically, could dictate crude oil prices.
Copyright(c) 2025 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2025 AFX News
