RIYADH: Oil gained after the Organisation of the Petroleum Exporting Countries and its allies (Opec+) agreed to raise production by a modest amount, staving off traders’ fears of a super-sized increase.
Brent rose above US$65 a barrel, while West Texas Intermediate was near US$61.
At a meeting on Sunday, the alliance, including Russia, backed a 137,000-barrel-a-day increment, well below some of the possible figures reported before the decision.
The move “is clearly on the light side of expectations,” said Chris Weston, head of research at Pepperstone Group, who attributed the price gain to traders – who’d readied for a larger hike – adjusting tactical positions.
The Opec+ increase “will do no favours to the notion of an oversupplied market in 2026, and as such the upside in this rally should be capped,” he said.
Crude has declined this year on concerns that worldwide supplies are set to top demand. — Bloomberg
