Daily Financial Breakfast 2 November 2026: OPEC+ Holds December Output Targets While UKMTO Reports Tanker Hit by Two Projectiles

Market News Today: Key Takeaways

• OPEC+ agreed to keep December oil production targets unchanged as Gulf exports recovered but shipping constraints persisted.
• UKMTO said two unidentified projectiles struck a tanker sailing through the Arabian Gulf, approximately 72 nautical miles east of Ras Al Khafji, Saudi Arabia.
• Ukraine resumed attacks on Russian oil refineries after a pause of about two weeks, the Guardian reported.
• ECB Governing Council member Peter Kazimir said the policy debate was increasingly about how much further tightening was needed rather than whether to act.
• Japanese Finance Minister Satsuki Katayama said the joint foreign-exchange statement with the United States remained in place and Japan would act against disorderly currency moves.

Market Developments

Oil

WTI crude fell after three days of gains, trading around $101.20 per barrel during Monday's Asian session.

Foreign Exchange

The euro strengthened to near $1.1175 in early European trading on Monday, with third-quarter eurozone and German GDP figures beating forecasts. The Australian dollar weakened against the U.S. dollar and was among the weakest major currencies amid mixed Australian economic figures and stronger Chinese manufacturing activity.

Energy Policy & Security

OPEC+ Keeps December Oil Production Targets Unchanged

The Organization of Petroleum Exporting Countries and its allies agreed on Sunday to leave oil production targets steady for December.

Gulf exports have been recovering, but months of Middle East disruption have drawn down inventories, tightened tanker availability, stretched alternative export routes and depleted refined-product stocks, OCBC strategists Sim Moh Siong and Christopher Wong said. Brent remained above $110 per barrel despite the recovery in exports.

The strategists described transportation, rather than production, as the increasing bottleneck. Longer voyages, security risks and disrupted routes have tied up vessels and raised freight costs, while higher transport costs have disrupted refined-product trade flows and increased replacement costs.

UKMTO Reports Tanker Struck by Two Projectiles off Saudi Arabia

A tanker sailing southeast through the Arabian Gulf was struck by two unidentified projectiles approximately 72 nautical miles east of Ras Al Khafji, Saudi Arabia, the UK Maritime Trade Operations said on Monday, Reuters reported.

Ukraine Resumes Russian Refinery Attacks, Guardian Reports

Ukraine has resumed attacks on Russian oil refineries, ending a pause of about two weeks, the Guardian reported on Sunday. The newspaper said the attacks resumed despite pressure from U.S. President Donald Trump ahead of the U.S. midterm elections.

Monetary & Foreign-Exchange Policy

ECB's Kazimir Says Debate Is Shifting to How Much Further Tightening Is Needed

European Central Bank Governing Council member Peter Kazimir said on Monday that the question was increasingly not whether further ECB action was needed, but how much. Kazimir, who also heads the National Bank of Slovakia, warned against allowing high inflation to become normalised.

Waiting for inflation to spread and businesses to pass on costs was not necessarily good policy, he said. He also said markets might still underestimate the policy path required.

Japan's Katayama Reaffirms Action Against Disorderly Currency Moves

Japanese Finance Minister Satsuki Katayama said on Monday that the joint foreign-exchange statement with the United States remained in place. She said the government would act against disorderly currency moves.

Upcoming Key Events

• Reserve Bank of Australia Interest Rate Decision: The Reserve Bank of Australia's forthcoming monetary policy decision follows mixed Australian economic figures.