OPEC+ Holds Production Hike, Oil Prices Continue to Rise
Oil prices rose for a fourth day after OPEC+ announced it would halt production increases in the first quarter of 2026. Previously, the group had maintained a supply increase of around 137,000 barrels per day for December, the same as scheduled for October and November. Brent has re-surfaced to $65 per barrel, its longest winning streak since late September, while WTI is approaching $61.
The pause decision comes amid concerns about oversupply, which have depressed Brent by around 10% in the past three months. Prices rebounded from a five-month low after tighter US sanctions on Russia raised questions about the smooth supply of the major exporter.
Although the eight key OPEC+ members still have around 1.2 million barrels per day left to recover, recent output increases have often fallen short of targets. Some countries are having to offset previous overproduction, while others are struggling to increase pumping, limiting the impact on the market. ANZ analysts Brian Martin and Daniel Hynes believe the January-March pause reflects a seasonal slowdown and concerns that the market is unable to absorb additional supply, especially if the Russian supply disruption is temporary.
On the geopolitical risk front, market participants are also monitoring potential physical disruption following a Ukrainian drone attack in the Black Sea that set fire to a tanker and damaged loading facilities at the port of Tuapse, where Rosneft's large refinery, which was recently sanctioned by the US along with Lukoil, is located. Meanwhile, President Donald Trump has raised the possibility of US military action against Nigeria over religious conflict. At 8:19 a.m. Singapore time, Brent crude for January delivery rose 0.6% to $65.13 per barrel, and WTI crude for December delivery strengthened 0.6% to $61.34. (asd)
Source: Newsmaker.id
