Market fears of a potential oil glut eased on Monday after OPEC+ opted for a modest production increase, signaling caution amid a fragile global outlook.
The producer alliance agreed to raise output by 137,000 barrels per day in November, maintaining the same pace as in October.
Traders viewed the move as a deliberate effort to balance supply without triggering a slide in prices.
By the end of September, OPEC+ had already rolled back 2.2 million barrels per day of earlier cuts, a year ahead of schedule, and was in the process of unwinding an additional 1.65 million barrels per day reduction.
Brent crude rose nearly 2% to $65.6 a barrel on Monday, reflecting relief that the group resisted a larger increase.
Still, price gains were capped as worries grew that the U.S. government shutdown could slow economic growth and weaken energy demand.
The decision also came after weeks of disagreement within the group, with Saudi Arabia pushing for a cautious approach to protect prices, while Russia argued for faster output increases to boost exports.
The compromise reached on Sunday highlights the delicate balance OPEC+ must maintain between price stability and members’ individual economic needs.
Analysts say the restrained approach underscores OPEC+’s focus on stability over volume, aiming to protect prices as the global economy faces mixed signals on growth and demand.
