OPEC+ Holds Steady on Output, WTI Climbs Above $92
OPEC+ decided to maintain its oil output policy for October, opting not to raise production levels until new quotas are settled. This decision comes after last month's agreement to increase output in September, which marked a key step in reversing the 1.65 million barrel-per-day supply cut implemented in 2023.
The group's current production levels remain below its targets due to ongoing conflicts. However, despite this, West Texas Intermediate (WTI) crude prices have risen, reaching $92.57 by the end of the day.
Derivative traders are advised to position themselves for continued upward momentum in oil prices over the coming weeks. The tight market structure, resulting from OPEC+ producing below its targets and subsequent supply deficits, is seen as a solid foundation for buying near-term call options on WTI.