Crude oil and refined product futures were under pressure approaching midday Monday after reports that OPEC and its allies are expected to approve another increase in production for November at its upcoming meeting.
In addition to the OPEC+ news, a move of either side of 5% last week for West Texas Intermediate appears to be correcting, giving back a large chunk of the upside.
For November, OPEC+ is expected to add another 137,000 b/d, Reuters reported Sunday, and Kurdistan has resumed oil exports to Turkey, putting plenty of selling pressure on the market. Both WTI and Brent are down well over $2 heading into midday.
November WTI bottomed at $63.12 recently and is only marginally higher than that at $63.30/bbl, down $2.42cts. November Brent expires Tuesday and has also lost grip of the $70 level, trading down $2.36 to $67.77/bbl. The more active November contract is faring slightly better, trading $2.25 lower at $66.97/bbl.
Over the past few weeks, ULSD has seen the bigger moves, finding aggressive buying on Ukrainian drone strikes on Russian refineries as well as seasonal strength. The contract has also seen some fairly sizable losses and is the leader to the downside Monday in the petroleum complex. Front-month ULSD was down more than 7.5cts at $2.3532/gal near midday with the more liquid November contract at $2.3437/gal, a 7.35ct loss and a slight reduction in backwardation.
RBOB futures were also sharply lower but overall were seeing the lightest pullback compared to the rest of the petroleum complex. That lighter pullback is still in the neighborhood of 5cts as the soon-to-expire October contract was down 4.8cts at $1.9896/gal. The November contract, which is highly referenced in U.S. spot markets, was off 4.89cts at $1.9404/gal. The drop in November has brought Gulf Coast and Chicago prompt CBOB back below the $1.90/gal level.
This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.
--Reporting by Denton Cinquegrana, dcinquegrana@opisnet.com; Editing by Michael Kelly, mkelly@opisnet.com
(END) Dow Jones Newswires
September 29, 2025 12:36 ET (16:36 GMT)
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