Oil prices climbed on Monday in early trade, trimming some of last week’s losses, after OPEC+ agreed over the weekend to raise output at a slower pace from October on expectations of weaker global demand.
Brent crude gained 34 cents, or 0.5%, to $65.84 a barrel by 0047 GMT, while U.S. West Texas Intermediate crude rose 30 cents, or 0.5%, to $62.17 a barrel.
Both benchmarks fell more than 2% on Friday as a weak U.S. jobs report dimmed the outlook for energy demand. They lost more than 3% last week.
OPEC+, which includes the Organization of the Petroleum Exporting Countries plus Russia and other allies, agreed on Sunday to further raise oil production from October as its leader Saudi Arabia pushes to regain market share, while slowing the pace of increases compared with previous months.
OPEC+ has been increasing production since April after years of cuts to support the oil market, but the latest decision to further boost output came as a surprise amid a likely looming oil glut in the northern hemisphere winter months.
Eight members of OPEC+ will lift production from October by 137,000 barrels per day, far below the monthly increases of about 555,000 bpd for September and August and 411,000 bpd in July and June.
”The oil market rebounded slightly, supported by relief over OPEC+’s modest output hike and a technical bounce following last week’s decline,” said Toshitaka Tazawa, an analyst at Fujitomi Securities.
”Expectations of tighter supply from potential new U.S. sanctions on Russia are also lending support,” he said, adding that downward pressure is likely to persist as OPEC+ continues to raise production and supplies ease.
Russia launched its largest air attack of the war on Ukraine, setting the main government building on fire in central Kyiv and killing at least four people, including an infant, Ukrainian officials said on Sunday.
U.S. President Donald Trump said on Sunday that individual European leaders would visit the United States on Monday and Tuesday to discuss how to resolve the Russia-Ukraine war.
Trump added that he was ”not happy” about the status of the war, after reporters asked about the massive Russian air assault. But he again expressed confidence that the war would soon be settled.
The European Union is sticking to its plans to phase out Russian oil by 2028, the bloc’s energy chief told Reuters on Friday, adding that he had not faced pressure from Washington to bring forward this deadline.
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