Oil prices rose in early trading on Monday, clawing back some of last week’s losses, after OPEC+ agreed to raise production at a slower pace from October amid concerns over weakening global demand.
Brent crude gained 23 cents, or 0.4%, to $65.73 a barrel by 2213 GMT, while US West Texas Intermediate crude climbed 21 cents, or 0.3%, to $62.08. Both benchmarks had slid more than 3% last week, including a sharp fall on Friday following a weaker-than-expected US jobs report that clouded the outlook for fuel consumption.
The weekend decision by OPEC+ – a grouping of the Organisation of the Petroleum Exporting Countries, Russia and other allies – surprised some analysts. The alliance announced it would increase production by just 137,000 barrels per day (bpd) from October. That is significantly lower than the monthly increments of about 555,000 bpd in August and September, and 411,000 bpd earlier in the summer.
Saudi Arabia, OPEC’s de facto leader, has been keen to recover lost market share, but officials signalled that the risk of oversupply during the northern hemisphere winter had forced a rethink.
OPEC+ has been gradually unwinding its production cuts since April, after years of coordinated supply restrictions intended to stabilise the market. But the slower pace of increases reflects a more cautious outlook, as global economic signals point to softening demand and a potential oil glut.
Traders said further price support will depend on whether demand picks up in major consuming regions in the coming months.
