Oil prices gain as OPEC+ opts for cautious output hike
Oil prices rose by more than 1% on Monday after OPEC+ revealed a smaller-than-anticipated production increase for November.
The modest adjustment eased market concerns over a potential supply surge. However, analysts noted that a sluggish outlook for global demand could limit further gains in the near term, News.Az reports, citing Reuters.
"The market was expecting a somewhat larger increase from OPEC+ as shown in the structure last week," said Janiv Shah, an analyst at Rystad.
"However the modest 137,000 bpd bloats the already-oversupplied balance for the fourth quarter of 2025 and 2026."
On Sunday, the Organization of the Petroleum Exporting Countries plus Russia and some smaller producers said it would raise production from November by 137,000 barrels per day (bpd), matching October's figure, amid persistent concern over a looming supply glut.
In the run-up to the meeting, sources said although Russia was advocating for an increase of 137,000 bpd to avoid pressuring prices, Saudi Arabia would have preferred double, triple or even four times that to quickly regain market share.
The modest production update also comes at a time of rising Venezuelan exports, the resumption of Kurdish oil flows via Turkey, and the presence of unsold Middle Eastern barrels for November loading, PVM Oil Associates analyst Tamas Varga said.
Saudi Arabia kept unchanged the official selling price for the Arab Light crude it sells to Asia.
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