Daily Financial Breakfast 2 November 2026: OPEC+ December Output Targets Unchanged; Two Projectiles Hit Tanker, UKMTO Reports

Today's Market News: Key Developments

• December oil production targets will remain unchanged under the OPEC+ agreement. Gulf exports recovered, although shipping capacity remained constrained.
• Two unidentified projectiles hit a tanker in the Arabian Gulf, UKMTO said. The vessel was approximately 72 nautical miles east of Ras Al Khafji, Saudi Arabia.
• Following a pause of about two weeks, Ukraine renewed its attacks on Russian oil refineries, according to the Guardian.
• How much more tightening is required, rather than whether to act, was increasingly the focus of the policy debate, ECB Governing Council member Peter Kazimir said.
• The joint foreign-exchange statement with the United States remained in force, Japanese Finance Minister Satsuki Katayama said, reaffirming that Japan would counter disorderly currency moves.

Market Moves in Focus

$101.20: WTI Crude Retreats

WTI crude traded around $101.20 per barrel during Monday's Asian session. Prices declined following three consecutive days of gains.

$1.1175: Euro Firms as Australian Dollar Weakens

Stronger-than-forecast third-quarter GDP figures from the eurozone and Germany supported the euro, which advanced to near $1.1175 in early European trading on Monday. Against the U.S. dollar, the Australian dollar declined and ranked among the weakest major currencies. Australian economic figures were mixed, while Chinese manufacturing activity strengthened.

Energy Policy & Shipping Security

December Oil Production Targets Stay Steady Under OPEC+ Agreement

December oil production targets will stay unchanged. The Organization of Petroleum Exporting Countries and its allies reached the agreement on Sunday.

Despite recovering Gulf exports, Brent held above $110 per barrel. OCBC strategists Sim Moh Siong and Christopher Wong said months of disruption in the Middle East had reduced inventories, constrained tanker availability, put pressure on alternative export routes and run down refined-product stocks.

Transportation was increasingly the bottleneck, rather than production, the strategists said. Vessels have been tied up by longer voyages, security risks and route disruptions, pushing freight costs higher. Rising transport costs have also disturbed refined-product trade flows and lifted replacement costs.

Two Projectiles Hit Tanker off Saudi Arabia, UKMTO Says

Approximately 72 nautical miles east of Ras Al Khafji, Saudi Arabia, two unidentified projectiles hit a tanker travelling southeast through the Arabian Gulf. Reuters reported that the UK Maritime Trade Operations disclosed the incident on Monday.

Two-Week Pause Ends as Ukraine Renews Russian Refinery Attacks, Guardian Says

After a pause of about two weeks, Ukraine restarted attacks on Russian oil refineries, the Guardian reported on Sunday. According to the newspaper, the renewed attacks came despite pressure from U.S. President Donald Trump ahead of the U.S. midterm elections.

Monetary & Currency Policy Developments

Further ECB Tightening: Kazimir Says Debate Centres on Scale

The scale of further ECB action, rather than the need to act, was increasingly the issue, European Central Bank Governing Council member Peter Kazimir said on Monday. Also the head of the National Bank of Slovakia, Kazimir cautioned against letting high inflation become normalised.

Allowing time for inflation to spread and for businesses to pass on costs was not necessarily sound policy, he said. Markets might also continue to underestimate the required policy path, he added.

Disorderly Currency Moves: Japan's Katayama Restates Pledge to Act

Japan's joint foreign-exchange statement with the United States continued to apply, Japanese Finance Minister Satsuki Katayama said on Monday. The government would respond to disorderly currency moves, she said.

Key Events Ahead

• Reserve Bank of Australia Rate Decision in Focus: Mixed Australian economic figures precede the Reserve Bank of Australia's forthcoming monetary policy decision.