Oil prices slipped slightly in Asian session after reports that OPEC+ is set to approve another production hike in November. The group is said to consider lifting quotas by at least 137k barrels per day when ministers meet next Sunday, adding to the series of increases since April.
The cartel has already boosted output quotas by more than 2.5 million barrels per day, equivalent to around 2.4% of global demand. The shift marks a decisive reversal from earlier supply restraint, with members now focused on regaining market share as prices hover at supportive levels.
Eight key producers will meet online on October 5 to finalize the November decision. Markets will be watching not just the headline figure but also whether the hike overshoots expectations, which could put fresh pressure on prices. On the other hand, smaller-than-anticipated increase could give oil prices a lift through a key near term resistance level.
Technically, WTI’s drop from 78.87 appears to have completed as a three wave correction at 61.90. The immediate focus is resistance at 66.55. Firm break above this barrier would reinforce this bullish and target 71.34.
However, rejection by the resistance would keep the short-term outlook bearish, leaving the door open for another fall through 61.90 as a later stage.
