Oil prices rebound as market braces for key reports
Oil prices on the fuel exchange in New York are rising sharply, rebounding from the lowest levels since 2021 after a "brutal" previous week with solid declines. Last week, Brent oil in London fell by nearly 10 percent.
A barrel of West Texas Intermediate (WTI) oil for October delivery costs $68.58 on the NYMEX exchange in New York, after a rise of 1.34 percent. Meanwhile, Brent oil on the ICE exchange in London for November is priced at $71.95 per barrel, up 1.25 percent, following a nearly 10 percent decline last week.
This week, investors will focus on three reports that will help assess the outlook for fuel demand. Forecasts will be presented by OPEC, the International Energy Agency (IEA), and the U.S. Department of Energy (DoE). Additionally, the Asia Pacific Petroleum Conference, a significant industry meeting in the region, is taking place in Singapore this week.
OPEC+ delays decision to increase oil supplies
The weakness prevailing in global fuel markets has caused OPEC+ countries to delay the planned increase in oil supplies from October by two months.
Last week, OPEC posted a statement on its website announcing the postponement of the increase in oil supplies by two months, amounting to 180,000 barrels per day.
Morgan Stanley analysts noted in a market report that the announcement last week by the OPEC+ alliance countries that they are delaying the planned increase in oil supplies signals to the markets that this group of producers is still focused on balancing the oil market.
For now, OPEC+'s long-term plan to gradually return 2.2 million barrels of oil per day to the markets over a year remains in place. The completion date has been pushed by two months to December 2025.
For each of the next five quarters, Morgan Stanley forecasts an average Brent price of $75 per barrel. "They estimate that as long as oil demand does not weaken further, the Brent price will likely be 'anchored' around the mid-$70 per barrel.
