WTI remains sluggish near $68.00 as OPEC+ plans to increase output in December

• WTI Oil prices receive downward pressure as OPEC+ is likely to increase output by 180,000 barrels per day in December.
• The US has purchased 6 million barrels of oil for the Strategic Petroleum Reserve, with delivery scheduled through May 2025.
• Israel has declared a “limited” ground operation aimed at Hezbollah positions in the southern Lebanon border area.

West Texas Intermediate (WTI) Oil price maintains position around $68.00 per barrel during the Asian session on Tuesday. Crude Oil prices are muted as expectations of increased supply and sluggish global demand growth offset concerns over supply disruptions amid the escalating Middle East conflict.

OPEC+, which includes the Organization of the Petroleum Exporting Countries and its allies like Russia, is set to increase output by 180,000 barrels per day (bpd) in December. According to a report from the Financial Times, citing unnamed sources familiar with Saudi Arabia's plans, the kingdom is determined to resume production on December 1, even if it leads to a temporary decline in prices.

Oil prices faced downward pressure due to weaker-than-expected demand growth this year, especially in China, the world’s largest crude importer. These demand concerns were further heightened by data indicating a decline in manufacturing activities in China for September. On Monday, the Caixin Manufacturing Purchasing Managers' Index (PMI) dropped to 49.3 in September, signaling a contraction, compared to 50.4 in August.

The United States (US) has acquired 6 million barrels of Oil for the Strategic Petroleum Reserve (SPR) for delivery through May 2025. This purchase is part of an initiative to replenish stockpiles following President Joe Biden's directive in 2022 for the largest-ever sale from the reserve, totaling 180 million barrels.

US crude Oil and fuel stockpiles were projected to have decreased by approximately 2.1 million barrels during the week ending September 27, according to a preliminary Reuters poll released on Monday. The poll was conducted ahead of reports from the American Petroleum Institute (API) and the US Energy Information Administration (EIA), both set to release data on crude Oil stock changes for the same period on Tuesday.

Israel has announced a “limited” ground operation targeting Hezbollah positions in the southern Lebanon border region, with troops crossing into the area, according to local news agency Al Jazeera. In addition, Israeli warplanes launched extensive airstrikes on southern Beirut after civilians were instructed to evacuate. On Monday, Israeli attacks in Lebanon resulted in the deaths of at least 95 people.