Oil prices edged higher on Sunday after the Organization of the Petroleum Exporting Countries (OPEC) and its allies agreed to a modest production increase of 137,000 barrels per day (bpd) starting in November.
The move signals the group’s cautious stance toward expanding output amid persistent fears of oversupply.
According to market data, Brent crude gained nearly 1.5 percent to trade at $65.30 per barrel, while West Texas Intermediate (WTI) rose 1.18 percent to $61.60.
The smaller-than-expected production hike came as a relief to traders who had anticipated a more aggressive increase of up to 500,000 bpd.
Don’t Miss This: Nigeria Becomes Key Crude Supplier to Senegal’s Dakar Refinery
The latest adjustment mirrors October’s output change and follows internal deliberations that reportedly highlighted tension between Russia and Saudi Arabia.
Moscow was said to have preferred a conservative increase, citing Western sanctions and concerns over potential price declines, while Riyadh advocated for a stronger production push.
OPEC+ explained that its decision reflected confidence in a “steady global economic outlook and healthy market fundamentals,” pointing to low global oil inventories as evidence that supply and demand remain balanced.
So far in 2025, the oil alliance has collectively raised production targets by over 2.7 million bpd, equivalent to about 2.5 percent of global oil demand.
The strategy aims to recover market share lost to non-OPEC producers without triggering a steep fall in prices.
The coalition will reconvene on November 2 to review market developments and may revise its production strategy based on updated demand trends and inventory data.
Image Credit: Punch Newspapers
