Oil prices rose on Sunday after OPEC and its allies agreed to a modest increase of 137,000 barrels per day (bpd) from November, signalling a cautious approach to production growth amid persistent concerns of oversupply.
Hence OPEC+’s oil output rose from 1.65 million barrels per day (bpd) in April to 1.787 million bpd in November, indicating an 8.3 percent modest increase over the period.
Brent crude climbed by nearly 1.5 percent to $65.30 per barrel, a 1.19 percent increase, while West Texas Intermediate (WTI) rose to $61.60, a 1.18 percent increase as markets reacted to the smaller-than-expected hike.
The output adjustment mirrors that of October and comes after the group dismissed rumours of a more aggressive 500,000 bpd increase.
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So far this year, OPEC+ has raised its collective target by over 2.7 million bpd, equivalent to around 2.5 percent of global demand, as the alliance seeks to reclaim market share from non-OPEC producers without triggering a sharp price decline.
Oil Price.com, a website that provides updates on oil prices, suggested friction between Russia and Saudi Arabia, with Moscow tapped to favour a modest hike due to sanctions-related constraints and fears of weakening prices, while Riyadh pushed for a bolder increase.
OPEC attributed its measured decision to a “steady global economic outlook and healthy market fundamentals,” citing low global oil inventories as evidence of balance.
The alliance will reconvene on November 2 to reassess production levels and may revise its strategy depending on demand trends and inventory data.
