Oil prices climb as OPEC+ approves 137,000 bpd output hike

Oil prices rose on Sunday after OPEC and its allies agreed to a modest increase of 137,000 barrels per day (bpd) from November, signalling a cautious approach to production growth amid persistent concerns of oversupply.

Brent crude climbed by nearly 1.5 percent to $65.30 per barrel, a 1.19 percent increase, while West Texas Intermediate (WTI) rose to $61.60, a 1.18 percent increase as markets reacted to the smaller-than-expected hike.

The output adjustment mirrors that of October and comes after the group dismissed rumours of a more aggressive 500,000 bpd increase.

So far this year, OPEC+ has raised its collective target by over 2.7 million bpd, equivalent to around 2.5 percent of global demand, as the alliance seeks to reclaim market share from non-OPEC producers without triggering a sharp price decline.

According to Oilprice, leading up to the meeting suggested friction between Russia and Saudi Arabia, with Moscow said to favour a modest hike due to sanctions-related constraints and fears of weakening prices, while Riyadh pushed for a bolder increase.

OPEC attributed its measured decision to a “steady global economic outlook and healthy market fundamentals,” citing low global oil inventories as evidence of balance.

The alliance will reconvene on November 2 to reassess production levels and may revise its strategy depending on demand trends and inventory data.

Faith Esifiho

Faith Esifiho is an Energy correspondent at BusinessDay, covering Nigeria's electricity sector, oil and gas industry, and energy policy. She reports on power outages, electricity tariffs, gas sector reforms, and the broader challenges facing the country's energy transition. She specializes in data-led reporting and human-angle stories that examine how energy policies affect everyday Nigerians and also tracks trends in the power sector, analyses regulatory changes, and investigates the impact of subsidy reforms and pricing policies.