Oil Markets Stage Recovery Despite Saudi Arabia's Market Share Push
(MENAFN- The Rio Times) Trading data from major commodity exchanges shows both WTI crude and Brent oil gained over 1% on September 8, with WTI climbing to $62.67 per barrel and Brent reaching $66.31.
The recovery followed a difficult Friday when both benchmarks dropped more than 2% after weak US employment data raised recession fears.
OPEC+ members surprised markets over the weekend by agreeing to boost production by 137,000 barrels per day starting in October. Eight key producers led by Saudi Arabia made the decision during a virtual meeting on Sunday.
The increase marks the beginning of unwinding additional voluntary cuts totaling 1.65 million barrels daily. The October production boost represents a 75% reduction from recent monthly increases of 555,000 barrels per day in August and September.
OPEC+ has reversed 2.5 million barrels of daily cuts since April, equivalent to roughly 2.4% of global demand. Jorge Leon from Rystad Energy described the modest increase as sending a clear message about prioritizing market share over price support.
Technical analysis of the provided daily charts reveals both crude benchmarks trading within established ranges. WTI shows support around $60-61 levels with resistance near $70, while Brent faces similar dynamics between $65-70.
The RSI indicators suggest oversold conditions may be attracting buying interest, though both oils remain below key moving averages.
The Global Liquidity Index, represented by the yellow line on the charts, shows elevated levels that historically coincide with commodity price pressures.
Current readings suggest ample liquidity conditions that could support further price volatility as markets digest production changes and geopolitical developments.
Russian oil sanctions continue tightening with the EU's 18th sanctions package targeting Indian refineries processing Russian crude. The measures include a ban on importing petroleum products refined from Russian oil in third countries, effective January 2026.
European sanctions against Russia have grown from zero in 2013 to 2,534 by 2025. Market sentiment remains cautious despite Monday's recovery.
The combination of OPEC+ production increases and potential demand weakness creates uncertainty for the final quarter of 2025. US crude production continues at record levels near 13.4 million barrels daily, adding to global supply pressures.
Volume indicators show elevated trading activity as markets process conflicting signals from supply increases and geopolitical tensions.
The modest price gains reflect expectations that new US sanctions on Russian crude could disrupt flows, partially offsetting OPEC+ production additions. Analysts expect continued range-bound trading with WTI testing $60-65 and Brent facing $65-70 boundaries.
The market faces a delicate balance between production increases and demand uncertainty, with geopolitical risks providing occasional price support. OPEC+ retains flexibility to pause or reverse production hikes based on evolving market conditions.
The recovery followed a difficult Friday when both benchmarks dropped more than 2% after weak US employment data raised recession fears.
OPEC+ members surprised markets over the weekend by agreeing to boost production by 137,000 barrels per day starting in October. Eight key producers led by Saudi Arabia made the decision during a virtual meeting on Sunday.
The increase marks the beginning of unwinding additional voluntary cuts totaling 1.65 million barrels daily. The October production boost represents a 75% reduction from recent monthly increases of 555,000 barrels per day in August and September.
OPEC+ has reversed 2.5 million barrels of daily cuts since April, equivalent to roughly 2.4% of global demand. Jorge Leon from Rystad Energy described the modest increase as sending a clear message about prioritizing market share over price support.
Technical analysis of the provided daily charts reveals both crude benchmarks trading within established ranges. WTI shows support around $60-61 levels with resistance near $70, while Brent faces similar dynamics between $65-70.
The RSI indicators suggest oversold conditions may be attracting buying interest, though both oils remain below key moving averages.
The Global Liquidity Index, represented by the yellow line on the charts, shows elevated levels that historically coincide with commodity price pressures.
Current readings suggest ample liquidity conditions that could support further price volatility as markets digest production changes and geopolitical developments.
Russian oil sanctions continue tightening with the EU's 18th sanctions package targeting Indian refineries processing Russian crude. The measures include a ban on importing petroleum products refined from Russian oil in third countries, effective January 2026.
European sanctions against Russia have grown from zero in 2013 to 2,534 by 2025. Market sentiment remains cautious despite Monday's recovery.
The combination of OPEC+ production increases and potential demand weakness creates uncertainty for the final quarter of 2025. US crude production continues at record levels near 13.4 million barrels daily, adding to global supply pressures.
Volume indicators show elevated trading activity as markets process conflicting signals from supply increases and geopolitical tensions.
The modest price gains reflect expectations that new US sanctions on Russian crude could disrupt flows, partially offsetting OPEC+ production additions. Analysts expect continued range-bound trading with WTI testing $60-65 and Brent facing $65-70 boundaries.
The market faces a delicate balance between production increases and demand uncertainty, with geopolitical risks providing occasional price support. OPEC+ retains flexibility to pause or reverse production hikes based on evolving market conditions.
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