Oil prices hold steady after OPEC+ output hike
Oil prices stabilized following a two-day rally as OPEC+ agreed to a modest increase in supply quotas, while traders weighed the impact of Saudi Arabia’s lower-than-expected crude pricing.
Brent was near $66 a barrel, with West Texas Intermediate below $62, News.Az reports, citing Bloomberg.
OPEC and allies including Russia decided at the weekend on a 137,000-barrel-a-day rise, while de-facto leader Saudi Arabia kept the price of its main grade to Asia steady in a sign of caution, surprising traders who’d expected an increase.
Crude posted back-to-back losses in August and September, hurt by concerns over an impending surplus. OPEC+ has been ramping up output for months in a bid to reclaim market share even as rival drillers from the Americas keep on raising production. Traders are also watching Ukrainian attacks on Russian energy infrastructure in case it hampers supplies.
Brent’s futures curve, meanwhile, reflects softer conditions. The prompt spread — the difference between the two nearest contracts — has narrowed to a 42 cent premium. The gap was just under $1 in the days leading up to the end of last month, suggesting the market has priced in looser near-term balances.
“Markets have been worried since OPEC+ started boosting production quotas in April 2025 that additional OPEC+ barrels would exacerbate oversupply conditions,” said Vivek Dhar, an analyst at Commonwealth Bank of Australia. Brent will hold between $60 and $65 a barrel if global inventories expand and diesel margins retreat further in a sign of weaker oil demand, he said.
Similar news
