Oil prices rose in Asian trade on Monday after the OPEC+ agreed to halt its ongoing production hikes in the next quarter amid concerns over a looming supply glut.
Ukrainian attacks on Russian energy infrastructure also aided oil prices with the prospect of more supply disruptions.
Brent oil futures for January rose 0.6% to $65.18 a barrel, while West Texas Intermediate crude futures rose 0.7% to $61.01 a barrel by 19:00 ET (00:00 GMT).
OPEC+ pauses output hikes in Q1
Oil’s biggest point of support was the Organization of Petroleum Exporting Countries and allies, or the OPEC+, agreeing to hike production by a small margin in December and pause plans for more hikes in early 2026.
The cartel raised its December output target by 137,000 barrels per day, the same as for October and November.
But the group– which has now raised its production quota by about 2.9 million bpd so far in 2025– said it will pause its recent production hikes in the first three months of 2026.
The OPEC+ cited concerns over a supply glut and sluggish demand, with January-March also seen as the weakest quarter for oil demand.
The OPEC’s output hikes this year are largely a winding back of two years of supply cuts, as the cartel sought to gain a greater market share to offset the impact of weak oil prices. Crude prices slide to a five-month high in October.
Ukraine attacks key Russian oil port
Oil was also supported by concerns over supply disruptions, after Ukraine on Sunday struck one of Russia’s main Black Sea oil ports.
The attack is part of Kyiv’s strategy to hinder Russia’s war efforts by attacking its energy infrastructure.
The attack came just after Russia struck Ukraine’s Zaporizhzhia region, which disrupted power supply for a large part of the country.
Russia’s largest oil firms were slapped with strict U.S. sanctions in October, raising some hopes of tighter global supplies in the coming months.
But given that Russia has dodged sanctions in the past, traders were waiting to see whether the new restrictions would have any meaningful effect.
Recent comments from U.S. President Donald Trump suggested that U.S. efforts to broker a Russia-Ukraine ceasefire were providing limited results. But fears of supply disruptions stemming from the war are expected to offer oil some support.
Source: Investing