Oil Narrowly Extends Gains as Traders Weigh OPEC+ Supply Moves

Core Insights - Oil prices experienced a decline after a two-day increase, following OPEC+'s decision to implement a modest supply quota increase, with traders reacting to lower-than-expected Saudi prices [1][2] Group 1: OPEC+ Decisions - OPEC+ agreed to a supply increase of 137,000 barrels per day, with Brent crude prices over $65 per barrel and West Texas Intermediate below $62 [2] - Saudi Arabia maintained the price of its main grade to Asia, which surprised traders who anticipated a price increase, indicating a cautious approach [2][4] Group 2: Market Reactions and Trends - Crude oil prices faced consecutive losses in August and September due to concerns over a potential surplus, as OPEC+ has been increasing output to regain market share amidst rising production from American drillers [3] - Traders are monitoring the situation regarding Ukrainian attacks on Russian energy infrastructure, which could impact supply levels [3] Group 3: Company Performance - Shell Plc reported a recovery in its oil and gas trading operations in the third quarter after facing challenges from geopolitical volatility in the previous period [4] - Exxon Mobil Corp. noted a rebound in refining margins during the third quarter, contributing approximately $500 million to earnings compared to the previous three months [4]