Photo by Timothy Newman on Unsplash
 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $60.50 during the Asian trading hours on Friday. The WTI remains on the defensive near its lowest level in four months amid concerns about oversupply in the market ahead of a meeting of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) over the weekend.

The WTI faces some selling pressure due to the expectations of increased supply from OPEC+ for next month. Traders expect the OPEC+ to boost production in November, triple the increase made for October, as Saudi Arabia seeks to reclaim market share, three sources familiar with the talks said.

“The focus for oil this week is squarely on the OPEC+ meeting over the weekend. We expect they will agree to continue adding barrels back to the market even amid forecasts for high inventory builds in 2026,” said Edward Bell, acting group head of research and chief economist at Emirates NBD.

Nonetheless, the ongoing conflict between Russia and Ukraine might help limit the WTI's losses. The Wall Street Journal (WSJ) reported on Thursday that the US will provide Ukraine with intelligence for long-range missile strikes on Russian energy infrastructure. These sources said that it will make it easier for Ukraine to hit refineries, pipelines and other infrastructure with the aim of depriving the Kremlin of revenue and oil. 

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