Oil rises after OPEC+ hikes output less than expected
Oil prices rose by about 1% on Monday after OPEC+'s planned production increase for November was more modest than expected, tempering some concerns about supply additions, though a soft outlook for demand is likely to cap near-term gains.
Brent crude futures climbed 71 cents, or 1.1%, to $65.24 a barrel by 1316 GMT, while U.S. West Texas Intermediate crude was at $61.47, up 59 cents, or 1%.
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.
Saudi Arabia kept unchanged the official selling price for the Arab Light crude it sells to Asia.
While refining sources in Asia surveyed by Reuters had expected a slight increase, those expectations diminished as concerns about rising Middle Eastern crude supply felled the premium to a 22-month low last week.
Despite the U.S. pressuring, India to cut its purchases of Russian oil, an Indian government official told Reuters on Monday that attacks on Russian energy and refinery facilities have led to increased availability of Russian oil, helping in part to support the oil market.
In the near term, some analysts expect the refinery maintenance season starting soon in the Middle East to also help cap prices.
Expectations of weak demand fundamentals in the fourth quarter are another factor limiting the market's upside.
U.S. crude oil, gasoline and distillate inventories rose more than expected in the week ended September 26 as refining activity and demand softened, the Energy Information Administration said last week.
Source : Reuters.com
