Oil prices climbed on Monday as OPEC+ agreed to a modest increase in output for November.
Brent crude futures were up 1.58% to US$65.55 as of 3:40 pm AEDT while West Texas Intermediate was up 1.66% to $61.89.
“In view of a steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories, the eight participating countries decided to implement a production adjustment of 137,000 barrels per day from the 1.65 million barrels per day additional voluntary adjustments announced in April 2023,” wrote OPEC+.
Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman are participating in the output hike.
The bloc had also agreed to raise production by 137,000 barrels for October. While Russia had favoured another increase of 137,000 barrels in November, Reuters reported, Saudi Arabia supported a far larger output hike to regain its market share.
OPEC+ has said it is committed to compensating for any overproduction. Members will next meet on 2 November.
Russian oil production has faltered by 10% in recent months, per Russian business daily Kommersant. One in 50 petrol stations has stopped selling petrol since late July.
Ukraine has stepped up its strikes on Russian oil facilities, saying over the weekend that it had attacked Russia's Kirishi oil refinery for the second time in three weeks. The European Parliament is also considering accelerating plans to phase out Russian imports.
“Intensifying geopolitical tensions are raising risk for supply disruptions. Russian exports have increased despite talks on sanctions, though threats of supply disruptions remain high,” ANZ wrote on Thursday.
ANZ projects that there will be an oil market surplus of 1.74 million barrels per day in 2025’s fourth quarter.
