OPEC’s Small Output Hike Seen as ‘Wise Move’

A decision by the OPEC-plus group to increase output by a small 100,000-bpd in September wasn’t what the market was expecting, but Peter Cardillo at Spartan Capital says that considering economies around the world may be slowing down, the decision makes sense. “Although, OPEC+ decision to raise output by 100,000 B/D took us by surprise, in our opinion it’s a wise move,” he says in an email. “The action taken by OPEC will likely stabilize oil prices around present levels in the near-term. Bottom Line: We see a new trading range between $93- $100, despite potentially weaker global economic activity.” WTI trades 2% higher at $96.30.