Oil prices climbed roughly 1.5% on Monday following OPEC+’s announcement of a more cautious monthly production increase than the market had anticipated. Brent crude futures rose by $0.91, or 1.4%, to $65.44 per barrel, while U.S. West Texas Intermediate (WTI) crude gained $0.89, or 1.5%, reaching $61.77 per barrel by early trading at 0315 GMT.
The Organisation of the Petroleum Exporting Countries and allies—including Russia—confirmed plans to raise production by 137,000 barrels per day (bpd) starting in November, matching the modest increase implemented in October. This decision aims to stabilize the market amid concerns of a potential supply glut.
Independent analyst Tina Teng told Reuters that the price increase was primarily driven by OPEC+’s decision to limit output growth to counter the recent decline in oil markets. However, analysts caution that the positive price momentum may be short-lived due to ongoing weak demand projections globally.
The restrained production hike signals OPEC+’s careful balancing act between managing supply and addressing demand uncertainties, as the energy market continues to grapple with economic and geopolitical factors affecting oil consumption worldwide.
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