DTN Oil Update
Oil Futures Mixed Amid Expectations of Low Demand
HOUSTON, TX (DTN) --Oil futures were mixed on Tuesday as escalating political tensions in the Middle East lent support to prices, while concerns over subdued global demand weighed on the market following OPEC's lates monthly report, which pointed to a weaker demand outlook.
The front-month NYMEX WTI futures contract rose $0.76 to $994.50 bbl, while ICE Brent for December delivery dropped $0.69 to $105.96 bbl
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NYMEX RBOB for November delivery dropped $0.0441 to $3.2476 gallon, while front-month ULSD futures climbed $0.02201 to $4.9433 gallon.
The U.S. dollar index softened by 0.390 points to 102.37 against a basket of foreign currencies.
In its October report, OPEC said that combined output from its members, their partners, and the UAE, rose by 900,000 bpd month-on-month to 39.07 million bpd in September, the highest level since late February. This was driven by a rise of nearly 400,000 bpd in Iraqi crude production, which was more than 93% higher than pre-war levels. Higher output from Saudi Arabia also contributed to the increase. However, OPEC+ crude oil production stood at 3.69 million bpd, or 9%, below February levels.
While most major forecasters see oil demand to contract this year, OPEC still continued to project growth, albeit at an increasingly modest pase as the crisis has unfolded. In its latest outlook, the producer group halved its estimate for 2026 oil demand growth to just 180,000 bpd year-on-year increase in consumption, signaling weaker demand.
In the domestic front, U.S. offshore crude oil production in the Gulf of America continued recovering following Hurricane Isaias, with shut-in output falling to 604,503 bpd, or 29.63% of regional production, as operators resumed operations at offshore facilities.
The Marine Minerals Administration (MMA) reported Monday) that crude production shut-ins declined from approximately 1.174 million bpd, or 57.54%, on Sunday (10/11), representing a recovery of nearly 570,000 bpd.
To make up for lost supply, the federal government last week authorized the release of up to 4 million bbl of crude oil from the Strategic Petroleum Reserve.
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