The eight OPEC+ members that had recently voluntarily reduced their production decided over the weekend, as expected, to further scale back their production restrictions, Commerzbank's Head of FX and Commodity Research Thu Lan Nguyen notes.

Oil price gives up gains

"However, they opted for a smaller step, similar to the previous month, by increasing production by 'only' 137,000 barrels per day. This eased concerns that production would be expanded as significantly as in previous months."

"Between April and September, OPEC's production rose by 1.7 million barrels per day, equivalent to an average of 340,000 barrels per month according to Bloomberg. The Oil price initially climbed yesterday but soon gave up those gains. Even though the production increase was smaller than feared, it comes at a time when the supply outlook is already favorable."