OPEC+ Shifts Course & Oil Falls

OPEC+ Shifts Course — Oil Falls Sharply After Goldman Sachs Forecasts a 140K bpd Output Hike

OPEC barrels and oil market decline illustration

OPEC+ has shifted course, with Goldman Sachs forecasting a 140,000 barrels-per-day output increase in November 2025. Oil sold off hard on the headline—Brent was trading near $66.69 at the time of writing—and FX markets quickly repriced energy-linked currencies such as USD/CAD (around 1.3952).

Why It Matters

By signaling more supply, OPEC+ appears to prioritize market share over price support. That shift can ease global inflation pressures, weigh on energy equities, and lift USD/CAD as Canada’s terms of trade soften when crude falls.

Timeline — The OPEC+ Pivot

  • Sept 30: Goldman Sachs projects a 140k bpd quota hike for November. (Reuters)
  • Early Oct: Oil extends weekly losses as traders price a looser supply path.

Market Impact & Levels (reference setup)

InstrumentBiasKey LevelsTrade Idea
Brent CrudeBearishR: $68.00–68.60 • S: $65.50Sell rallies • SL $69.00 • TP $64.80
WTI CrudeBearishR: $64.80–65.50 • S: $62.90Sell rallies • SL $66.00 • TP $62.20
USD/CADBullish above 1.39201.3920–1.3970 • 1.4010Buy dips • SL 1.3870 • TP 1.4050

Macro Takeaway

More barrels from OPEC+ point to softer energy inflation into Q4, giving central banks slightly more room to stay patient. For exporters, the trade-off is near-term revenue pressure in exchange for protecting longer-run market share.

FAQs

How large is the OPEC+ increase?+
Goldman Sachs expects roughly 140,000 barrels per day starting in November 2025, pending OPEC+ confirmation.
Why would OPEC+ add supply now?+
To defend market share amid softening demand, even if that means accepting lower prices in the short run.
What does this mean for inflation?+
Lower crude generally eases headline inflation, especially in energy-importing economies, and can reduce rate-hike pressures.
How does it affect USD/CAD?+
Cheaper oil often weighs on the Canadian dollar; USD/CAD tends to rise when crude declines, all else equal.
Could oil fall further from here?+
It depends on OPEC+ confirmation, stock levels, and global demand trends into late Q4. A confirmed hike would keep downside risks alive.
What’s a prudent trading approach now?+
Favor selling rallies on crude while managing risk at nearby resistance; in FX, consider USD/CAD buy-the-dip setups with clear invalidation.

Sources

Conclusion

The OPEC+ pivot marks a new phase for energy markets. Near-term bias stays bearish for crude and supportive for USD/CAD—until the group’s November quota is formally confirmed or demand surprises to the upside.

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