Oil prices climbed on Monday after OPEC+ decided to suspend production hikes in the first quarter of next year.
Brent crude futures rose 24 cents, or 0.37%, to $65.01 a barrel by 05:24 AM WAT after closing 7 cents higher on Friday. U.S.
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.
OPEC+ on Sunday agreed a small oil output increase for December and a pause in increases in the first quarter of next year.
The eight OPEC+ members taking part in the group’s monthly meeting – Saudi Arabia, Russia, the United Arab Emirates, Iraq, Kuwait, Oman, Kazakhstan, and Algeria – agreed to increase December output targets by 137,000 barrels per day, 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.
The development followed its moderating plans to regain market share due to rising fears of a supply glut.
OPEC+ has raised output targets by around 2.9 million barrels per day – or around 2.7% of global supply – since April, but slowed the pace from October amid predictions of a looming oversupply.
New Western sanctions on OPEC+ member Russia are adding to challenges in the strategy, as Moscow may struggle to further raise output after the U.S. and Britain imposed new measures on top producers Rosneft and Lukoil.
Oil prices fell to a five-month low of about $60 a barrel on October 20 due to concerns that a glut was building.
However, they have since recovered to about $65 a barrel due to Russian sanctions and optimism over U.S. talks with trade partners.
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OPEC+ had been reducing output for several years until April, and cuts had peaked in March, amounting to 5.85 million bpd in total.
The reductions comprised three elements: voluntary cuts of 2.2 million bpd, 1.65 million bpd by eight members, and a further 2 million bpd by the whole group.
The group has been unwinding voluntary cuts, while the last element of the cuts for the whole group is meant to stay in place until the end of 2026.
Eight OPEC+ members will meet again on November 30, the same day as a full OPEC+ meeting.