Crude oil is settling at $62.37. That’s down $1.08 or -1.7%. The high price reached near $63.26. The low price was at $62.03. At the low, the price tested the high of a swing area between $61.45 and $61.94.
There were reports earlier today:
OPEC+ is weighing the possibility of a larger oil output increase for November, with discussions centered on a potential hike of around 411,000 barrels per day (bpd) and even considering as much as 500,000 bpd, according to Reuters sources. Bloomberg reported that the group may discuss implementing a 500,000 bpd hike over three months, while OPEC+ is also considering accelerating its current supply hike plan in monthly increments of roughly 500,000 bpd to regain market share. Additionally, Saudi Arabia and its partners will review the early return of the remaining 1.66 million bpd supply tranche at their October 5 meeting. No final decision has been made yet, but a hike of this magnitude remains one of the key options under discussion.
Later, OPEC refuted the media report with a tweet saying:
The OPEC Secretariat firmly rejects recent media reports alleging that the Group of Eight (G8) countries are planning to increase production by 500 kb/d. These claims are wholly inaccurate and misleading. At present, discussions among the relevant Ministers concerning the upcoming meeting have not yet commenced. Consequently, the OPEC Secretariat strongly urges media outlets to exercise accuracy and responsibility in their reporting in order to avoid fueling unnecessary speculation in the oil market.
Technically, the price remains below the 100 hour moving average at $64.67 and also the 61.8% retracement of the move up since the April low at $63.71. That keeps the sellers more in control. Having said that, the low price today just short of the swing area between $61.45 and $61.94, keeps the buyers in play.