Oil edges higher as OPEC falls short of expected output increase

Oil was up on Tuesday in Asia, even as the Organization of the Petroleum Exporting Countries (OPEC) failed to deliver the expected output increases in October. In contrast, China boosted operating rates to meet a spike in the country’s diesel demand.

Brent oil futures jumped 0.28% to $84.95 by 10:30 PM ET (2:30 AM GMT), while U.S. West Texas Intermediate futures edged up 0.24% to $84.25.

Oil reached multi-year highs during the previous week, lifted by a post-pandemic-era demand rebound and the OPEC+ keeping to a gradual, monthly output boost of 400,000 barrels per day (bpd) amid major consumers’ clamor for additional supply.

Despite the OPEC’s injection of 27.50 million bpd in October this year that raised the month 190,000 bpd higher than the previous one, the figure remained below the 254,000-increase permitted under the OPEC+ supply deal.

The oil group’s next meeting is set for November 4^.

In China, the leading importer of oil globally, national oil firms boosted refiner run rates in order to prevent a diesel shortage.

Investors are now waiting for data on crude oil supply from the American Petroleum Institute, due within the day.