Brent crude futures rose 24 cents, or 0.37%, to $65.01 a barrel after closing 7 cents higher on Friday. United States (US) West Texas Intermediate crude was at $61.19 a barrel, up 21 cents, or 0.34%, after settling up 41 cents in the previous session.
The Organisation of the Petroleum Exporting Countries and their allies, known as OPEC+, agreed on Sunday to raise output by 137 000 barrels per day in December, the same as for October and November.
“Beyond December, due to seasonality, the eight countries also decided to pause the production increments in January, February, and March 2026,” the group said in a statement. ING’s Head of Commodities Research, Warren Patterson said the OPEC+ decision appears to be an acknowledgment of the large surplus that the market faces, particularly through early next year.
“Obviously, still plenty of uncertainty over the scale of the surplus, which will be dependent on how disruptive US sanctions will be to Russian oil flows,” he added.
RBC Capital’s Head of Commodities Strategy, Helima Croft also noted that Russia remains a key supply wildcard in the wake of the US imposing sanctions on top Russian producers Rosneft and Lukoil as well as the ongoing strikes on the country’s energy infrastructure as part of the Ukraine war.
–Reuters–
