Oil prices gained on Tuesday after OPEC+ decided to increase production by less than what market participants had anticipated, while concerns over tighter supply due to potential new sanctions on Russia continued to lend support.
Brent crude gained 35 cents, or 0.53%, to $66.37 a barrel by 0335 GMT, while U.S. West Texas Intermediate crude climbed 32 cents, or 0.51%, to $62.58 a barrel. Eight members of the Organisation of the Petroleum Exporting Countries and allies, collectively known as OPEC+, agreed on Sunday to raise production from October by 137,000 barrels per day.
That is much lower than the monthly increases of about 555,000 bpd for September and August, and 411,000 bpd in July and June. It is also less than some analysts had expected.
The October move “marks the reversal of cuts that were set to remain in place until the end of 2026, following the rapid return of the previous tranche of idled barrels over recent months,” said Daniel Hynes, senior commodity strategist at ANZ, in a client note on Tuesday.
