Analysts forecast that the rise may be short-lived as soft demand threatens a supply glut.
ADVERTISEMENT
Oil prices rose on Monday morning in Europe after the OPEC+ group agreed to only a modest boost in monthly production, allaying fears of a more dramatic hike.
After meeting on Sunday, the alliance said that it would raise oil production by 137,000 barrels per day in November, the same total it announced for October.
WTI crude oil rose 1.31% to $61.68 a barrel at around 8.15 CEST, while Brent jumped 1.22% to $65.32 a barrel.
Prices are, however, still down on the week after news of potential increases to OPEC+’s production.
In the last five days, WTI has slipped 2.79%, while Brent is down 3.90%. Oil prices traded near a four-month low on Friday.
The movements come after a surge in oil prices earlier this year, when barrels were trading at over $80, linked to tensions between Iran, Israel, and the US. The conflict raised concerns that Iran could block traffic through the Strait of Hormuz, one of the world's most important oil shipping routes.
OPEC+ has been steadily raising output this year after announcing cuts in 2023 and 2024 that were originally due to be phased out by September 2026.
In a statement on Sunday, the OPEC+ group noted that the decision to boost production was made “in view of a steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories”.
Even so, a number of analysts — including from the International Energy Agency — remain concerned that supplies are set to surpass demand, partly due to strong output from the Americas.
OPEC+ is composed of 12 member countries plus 10 non-members, with key players including Saudi Arabia and Russia.
The next meeting is scheduled for 2 November.
