Oil prices rose slightly on Tuesday after reports that OPEC+ is considering a modest output hike in December.
Brent crude futures were up 0.05% to US$65.65 per barrel as of 2:50 pm AEDT (3:50 am GMT), while West Texas Intermediate futures were up 0.02% to $61.32.
Eight OPEC+ countries, including Saudi Arabia and Russia, will meet on 2 November to discuss December’s output targets. They will likely raise output by 137,000 barrels per day, Reuters reported.
These OPEC+ members had previously agreed to increase their production by 137,000 barrels per day for November. Russia had reportedly recommended keeping output hikes at that level, the same as for October, while Saudi Arabia favoured a larger increase.
OPEC+ has boosted production targets by more than 2.7 million barrels per day since it began reversing output cuts in April.
The United States also last week added sanctions on Rosneft and Lukoil, Russia’s largest oil companies, resulting in oil prices’ largest weekly gains since June.
“The market was surprised by the U.S. move to sanction two of Russia’s biggest oil producers, Rosneft PJSC and Lukoil PJSC, which together make up nearly half of the country’s total crude exports. However, concerns over a glut of oil remain,” ANZ analysts wrote.
Lukoil will sell its international assets following these sanctions, it said today. The company represents about 2% of global oil production, and its largest international asset is the West Qurna oil field in southeastern Iraq.
