Daily Financial Breakfast 2 November 2026: OPEC+ Leaves December Output Targets Unaltered; UKMTO Reports Two Projectiles Struck a Tanker

Today's Market News: OPEC+ Holds Output Targets as Shipping Constraints Persist

• December oil production targets will stay at existing levels following an OPEC+ agreement, with Gulf exports recovering while shipping constraints continued.
• A tanker transiting the Arabian Gulf was hit by two unidentified projectiles approximately 72 nautical miles east of Ras Al Khafji, Saudi Arabia, UKMTO said.
• A break of about two weeks in Ukraine's attacks on Russian oil refineries has ended, according to the Guardian.
• The policy discussion was shifting increasingly towards the extent of further tightening needed, rather than whether action was warranted, ECB Governing Council member Peter Kazimir said.
• Japan would act to counter disorderly currency moves, Japanese Finance Minister Satsuki Katayama said, while confirming that the joint foreign-exchange statement with the United States remained in effect.

Oil Falls as the Euro Gains Ground

WTI Gives Back Gains

Three days of gains gave way to a decline in WTI crude during Monday's Asian session, when it traded at around $101.20 per barrel.

Euro Advances While Australian Dollar Lags

Third-quarter GDP figures for the eurozone and Germany exceeded forecasts, helping the euro reach nearly $1.1175 in early European trading on Monday. With Australian economic readings mixed and Chinese manufacturing activity stronger, the Australian dollar lost ground against the U.S. dollar, placing it among the weakest major currencies.

Energy Policy & Security Remain in Focus

OPEC+ Leaves December Oil Output Targets on Hold

Oil production targets for December will be held steady under the agreement reached on Sunday by the Organization of Petroleum Exporting Countries and its allies.

Months of disruption in the Middle East have left inventories lower, tanker availability tighter, alternative export routes stretched and refined-product stocks depleted, said OCBC strategists Sim Moh Siong and Christopher Wong. Gulf exports have nevertheless been recovering, although Brent has stayed above $110 per barrel.

In the strategists' view, transport is becoming the principal constraint, rather than production. Longer journeys, security risks and disruption to routes have kept vessels occupied and driven up freight costs. Those higher transport costs have also unsettled refined-product trade flows and increased replacement costs.

Tanker Hit off Saudi Arabia by Two Projectiles, UKMTO Reports

According to Reuters, the UK Maritime Trade Operations said on Monday that a tanker had been hit by two unidentified projectiles while sailing southeast through the Arabian Gulf, approximately 72 nautical miles east of Ras Al Khafji, Saudi Arabia.

Ukraine Restarts Strikes on Russian Refineries After Pause, Guardian Reports

The Guardian reported on Sunday that a pause of about two weeks had ended with renewed Ukrainian attacks on Russian oil refineries. The resumption came despite pressure from U.S. President Donald Trump ahead of the U.S. midterm elections, the newspaper said.

Monetary & Foreign-Exchange Policy Draw Attention

ECB Debate Turns Towards Scale of Further Tightening, Kazimir Says

How much further the ECB needed to act was increasingly the question, rather than whether it needed to act at all, European Central Bank Governing Council member Peter Kazimir said on Monday. As head of the National Bank of Slovakia as well, Kazimir warned that high inflation should not be allowed to become normalised.

It was not necessarily good policy to wait while inflation spread and businesses passed on costs, he said, adding that markets might still be underestimating the policy path required.

Japan Stands Ready to Counter Disorderly Currency Moves, Katayama Says

In remarks on Monday, Japanese Finance Minister Satsuki Katayama confirmed that the joint foreign-exchange statement with the United States remained effective and said the government would take action against disorderly currency moves.

RBA Decision Leads the Upcoming Agenda

• Reserve Bank of Australia Set to Announce Interest Rate Decision: Australian economic figures have been mixed ahead of the Reserve Bank of Australia's forthcoming monetary policy decision.