Oil prices are rising on Monday morning as traders assess OPEC+’s decision and Washington’s new statements on sanctions against Russia amid Russia’s continued full-scale military aggression against Ukraine.
The price of November Brent futures on the London ICE Futures exchange rose by $0.83 (1.27%) to $66.33 per barrel as of 7:15 a.m. On Friday, the contract fell by $1.49 (2.22%) to $65.50 per barrel.
WTI crude oil futures for October delivery on the New York Mercantile Exchange (NYMEX) rose by $0.77 (1.24%) to $62.64 per barrel. At the end of the previous session, the price of these contracts fell by $1.61 (2.54%) to $61.87 per barrel.
Over the past week, Brent and WTI futures fell in price by more than 3% on fears of an oversupply in the market if OPEC+ countries increase production.
Ministers from eight OPEC+ countries participating in voluntary oil production cuts approved an increase in production by 137,000 bpd in October at a meeting on September 7. The decision was made in view of the stable outlook for the global economy and favorable market conditions, reflected in low oil inventories, according to a statement from the alliance.
This will be the first tranche of a partial return to the market of voluntary restrictions of 1.65 million bpd, which were to remain in effect until the end of 2026. Now, the plan is to get rid of them by August.
Meanwhile, the production increase agreed upon over the weekend turned out to be less significant than previous ones.
“The moderate increase in OPEC+ production has brought relief to the market,” wrote Fujitomi Securities analyst Toshitaka Tazawa, adding that the increase in production had already been factored into prices, and now there is a technical rebound.
“Expectations of a supply reduction due to possible new US sanctions against Russia are also providing support,” the expert noted.
US President Donald Trump said on Sunday that he was ready to impose a second phase of restrictive measures against Russia. Trump considers the additional tariffs imposed on India to be the first phase of anti-Russian measures. Washington justified these measures by saying that Delhi buys oil from Russia.
