Oil prices continued to rise on Tuesday, as a smaller-than-expected increase in OPEC+ production in November helped ease some concerns about a growing supply surplus, UNN reports with reference to Reuters.
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Brent crude futures rose 23 cents, or 0.35%, to $65.70 a barrel at 03:56 GMT (06:56 Kyiv time). US West Texas Intermediate crude futures rose 21 cents, or 0.34%, to $61.90.
Both contracts rose more than 1% in the previous session after OPEC+ decided to increase aggregate oil production by 137,000 barrels per day starting in November.
The move goes against market expectations for a more active supply recovery, suggesting that the group remains cautious about increasing its share of global oil production amid forecasts of a supply surplus in both the fourth quarter and next year, ING analysts note.
"Brent crude prices fell by about $5 a barrel last week in response to earlier expectations of a larger supply increase, so this small rebound is justified," said An Pham, a senior analyst at LSEG.
"For now, the market still seems able to absorb the additional volumes, and we have not yet seen a shift to contango at the front end of the curve," he added.
OPEC+ has increased its oil production targets by more than 2.7 million barrels per day this year, which accounts for about 2.5% of global demand.
Geopolitical factors have held back price growth, in particular, Russia's war against Ukraine, which affects energy assets and creates uncertainty regarding the supply of Russian oil.
Russia's Kirishi refinery halted its most productive primary oil refining unit (ELDU-6) after a drone attack and subsequent fire on October 4. Repairs are likely to take about a month, two industry sources said on Monday.
However, oil prices have been under pressure amid rising production from both OPEC+ and non-OPEC+ countries. Moreover, any slowdown in demand due to weak economic growth caused by US trade tariffs is likely to exacerbate the surplus situation, analysts believe.