Oil prices edge up as OPEC+ delays output increase

Oil prices saw a modest uptick during the Asian session following OPEC+’s announcement to delay a planned increase in oil production of 2.2 million barrels per day by one month. On Sunday, the group also reiterated the members’ “collective commitment to achieve full conformity” with the established output targets.

This adjustment comes as part of OPEC+’s broader strategy, which agreed in June, to gradually restore output in controlled monthly increments after significant cuts over the past two years. Before Sunday’s decision, the plan was to start unwinding the 2.2 million bpd cut beginning December 2024, with further increases scheduled into the next year.

Technically, for the near term, considering bullish convergence condition in 4H MACD, WTI could have formed a short term bottom at 67.14. Break of 72.85 resistance will support this case and bring stronger rally back towards 78.87 resistance, as part of the sideway pattern from 65.63 low.

Nevertheless, there is no clear sign that the down trend from 87.84 has completed. As long as 78.87 resistance holds, another fall through 65.63 is still in favor after the consolidation pattern from there completes.