Oil prices rose more than $ 1 on Monday, recovering some of last week’s losses, after increased OPEC+production was considered moderate due to concerns about the possibility of more sanctions on Russian crude.
OPEC+ made plans to further increase production since October, but the amount was less than some analysts had predicted. Reuters reported earlier this month that members examined another hike.
“The market had run in front of this increase in OPEC+,” said Ole Hansen, head of the strategy of basic products in Saxo Bank. “Today we see a classic sale of reputation. Buy the reaction of the event.”
Brent Sable rose $ 1.28, or 1.95%, to $ 66.78 a barrel by $ 1031 GMT, while West Texas’ intermediate raw raw increased $ 1.20 or $ 1.94%to $ 63.07 a barrel.
Both benchmarks decreased more than 2% on Friday, as a weak report on US jobs broke the prospects for energy demand. Lost more than 3% last week.
OPEC+, which includes the organization of oil exporting countries and Russia and other allies, agreed on Sunday to further increase oil production since October.
OPEC+ has been increasing production since April after years of cuts aimed at supporting the oil market. The last decision comes despite the possible oil event in the winter months of the northern hemisphere.
Eight members of OPEC+ will raise production by 137,000 barrels a day from October. This, however, is much lower than the increase of about 555,000 BPD for September and August and 411,000 BPD in July and June.
The impact of the latest increase is expected to be relatively low because some members have overproduction. Thus, the highest level of production will probably include barrels already on the market, analysts said.
“Expectations of stricter offering from possible new US sanctions in Russia also lend support,” said Toshitaka Tazawa, an analyst of Fujitomi Securities.
US President Donald Trump said on Sunday that he is ready to move to a second phase of Russia’s sanctions, the closest to indicating that he is on the verge of increasing penalties against Moscow or his oil buyers for war in Ukraine war
New sanctions for Russian oil buyers could disrupt raw flows, TRDER GUNVOR’s world -renowned world research and analysis, Frederic Lasserre.
Russia began the largest air attack on the Ukrainian war over the weekend, setting the main government fire building in the central KIEB and killing at least four people, Ukraine officials said.
Trump said on Sunday that individual European leaders will visit the United States on Monday and Tuesday to discuss how to resolve the conflict.
In a note during the weekend, Goldman Sachs said it awaits a slightly larger oil surplus in 2026, as upgrades to America offset the degradation of supply in Russia and the strongest worldwide demand. Leave the Brent/WTI prices unchanged for 2025 and predicted the average of 2026 at $ 56/$ 52 a barrel.
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