Why are oil prices defying OPEC+ production hike announcement?
Oil prices are holding at around $67 a barrel, surprising many who expected them to drop after OPEC and its allies (OPEC+) announced they'd ramp up production by 137,000 barrels a day in October.
This is all part of their broader plan to add 1.65 million barrels daily, but so far, the price hasn't budged much.
China is buying up the excess supply
A big reason for this stability? China has been aggressively stockpiling oil, soaking up the extra supply and keeping prices from sliding.
Even though some analysts predict oil could dip to $53-56 next year if there's a surplus, right now the market's still tight—especially since OPEC+ only hit 65% of its planned output increase between March and July 2025.
For now, worries about an "oil glut" haven't really shown up in real-world inventories.