Oil Prices Surge Amid Trump's Pressure and Opec+ Boost
US President Donald Trump's pressure on countries to halt Russian crude imports has caused short-term fluctuations in oil prices. Meanwhile, Opec+ is set to boost production, with Brent oil trading at $65.54 and West Texas Intermediate at $61.94 on Thursday.
Oil prices have seen their largest weekly increase since June, driven by mounting pressure on Russian oil buyers and Ukrainian attacks on Russian energy infrastructure. Despite this, Opec+ is not aiming to prop up prices to a specific level and is content with softer prices in the $60s.
Analysts argue that the market's perceived oversupply of oil is exaggerated, with demand remaining strong due to limited Russian diesel exports, Chinese stockpiling, and expected winter demand. Opec+ has previously approved adding 137,000 barrels per day to the market for October and is now expected to boost production by 140,000 barrels per day in November. Saudi Arabia is reportedly pushing for a significant production increase of up to 500,000 barrels per day in November, although official confirmation is still awaited.
Oil prices are expected to trade around the 'mid to high 60s' on average this year, supported by strong demand. Opec+ is preparing for another production increase next month, with Brent oil currently at $65.54 and West Texas Intermediate at $61.94 per barrel.
