OPEC+ delays production increase: WTI oil price rose to $70.50 amid instability
Information about a possible Iranian attack sent oil prices soaring
At the End of October 31, West Texas Intermediate (WTI) Oil Surged Above $70.00 per Barrel
As of now, WTI is trading around the $70.50 mark.
Traders paid little attention to the U.S. Energy Information Administration's (EIA) report on increased U.S. oil production, which reached a record high of 13.4 million barrels per day in August. The previous record of 13.31 million barrels per day was set in December 2023.
According to the EIA, oil production in Texas rose by 1.7% to 5.82 million barrels per day, while production in New Mexico increased by 2.8% to 2.09 million barrels per day.
Instead, the market's focus has once again shifted to events in the Middle East, where tensions are escalating.
Focus on events in the Middle East
Reuters, citing Axios, reports that Israeli intelligence believes Iran is preparing a large-scale attack on Israel, involving numerous ballistic missiles and drones, in the days leading up to the U.S. elections on November 5.
Increased demand for oil was also supported by reports that OPEC+ plans to delay the production increase originally scheduled for December by at least a month. These plans may be revised due to weak oil demand and rising supply.
The price reaction to recent events could be exaggerated. However, any hint of escalating tensions in the Middle East or around Iran could push prices toward the significant technical level above $75, where the 100-day Simple Moving Average (SMA) and several other key indicators converge.
