OPEC+ May Hit Emergency Brakes! First Watch After Surge in Supply This Week? Plastics Market Turns Green Today, Most Fall by 10-120

Oil traders expect that OPEC+ will maintain crude oil production unchanged at this weekend's meeting.This is the organization's first pause after a series of accelerated production increases.。

OPEC and its allies have sent mixed signals about their next steps after they completed the restoration of 2.2 million barrels per day of previously curtailed oil supply a year ahead of schedule. Although market demand has held steady in recent months, according to data from the International Energy Agency (IEA),By the end of this year, the world will still be facing a severe oil supply surplus.。

Due to the unexpected production increase by OPEC+, coupled with a slowdown in fuel consumption in Asia and a surge in supply from the United States, Brazil, and Canada causing an oversupply situation, oil prices have fallen by about 9% this year.Brent crude oilFutures traded in London on Monday at nearly $68 per barrel, which is a victory for President Donald Trump, who has been working to lower fuel costs, but also poses a threat to the income of producers from the Persian Gulf to U.S. shale oil fields.

Aldo Spanjer, Head of Energy Strategy at BNP Paribas SA, said: "I expect OPEC+ to take a wait-and-see approach during the current refinery maintenance season to assess whether the widely anticipated decline in oil prices will materialize."

Officials from the organization have stated that part of the reason for increasing production is to regain the market share that was given up to competitors during years of production cuts. Additionally, the 1.66 million barrels per day of idle OPEC+ capacity was originally scheduled to remain offline until the end of next year.

Despite OPEC+ striving to compete for market share,Most traders and analysts surveyed by Bloomberg said that Saudi Arabia and its partners would not immediately resume this portion of the supply.Seven respondents predict that OPEC+ will agree to maintain the production levels of October at the video conference on Sunday, while six expect the organization to moderately increase production.

At last month's meeting, the alliance's eight major member countries approved an increase in production of 547,000 barrels per day in September, completing the restoration of the 2.2 million barrels per day of crude oil cut in 2023. Officials stated at the time that their next steps would be...It is possible to further increase production or to implement production cuts.。

OPEC stated in a statement on its website: "The gradual phasing out of additional voluntary production cuts may be paused or reversed, depending on the evolving market conditions."

Some analysts at Morgan Stanley, including Martijn Rats, predict that...OPEC+ will be forced to cut production next year to avoid a severe supply surplus.