Oil Rises Again, OPEC+ Takes Cautious Steps in 2026
Oil prices rose for the fourth straight day after OPEC+ announced plans to halt production increases in the first quarter of 2026, following a modest increase in December. Brent crude oil re-surfaced above $65 per barrel, marking its longest winning streak since late September, while West Texas Intermediate (WTI) hovered around $61 per barrel. OPEC+ stated that it would increase production by 137,000 barrels per day in December, in line with plans for October and November, before taking a pause in January-March 2026.
This move comes amid market concerns about a potential oversupply, with global Brent crude oil prices down about 10% in the past three months. However, oil prices have begun to recover after falling to a five-month low, driven by tighter US sanctions on Russia, which have raised uncertainty about oil supplies from the major producer. While OPEC+ still has about 1.2 million barrels per day to restore, the actual production increase is far from targeted, as some countries have had to adjust for previous overproduction and have struggled to increase output.
According to Warren Patterson of ING Groep NV, this decision shows that OPEC+ recognizes the presence of a large surplus in the market in early 2026, but there remains significant uncertainty about the extent of the sanctions' impact on Russian supply. Furthermore, the market is also concerned about potential physical supply disruptions following a Ukrainian drone attack in the Black Sea that set a tanker on fire and damaged oil loading facilities at the port of Tuapse, home to a large refinery operated by Rosneft.
Meanwhile, President Donald Trump has threatened military action against Islamic militants in Nigeria, Africa's largest oil producer, if the Nigerian government does not halt violence against the Christian community. Trump has also threatened to cut off aid to the OPEC member country. (Asd)
Source: Newsmaker.id
