Published by Global Banking & Finance Review®
Posted on October 7, 2025
3 min readLast updated: January 21, 2026
Add as preferred source on GoogleOil prices are stable as OPEC+ raises output, sparking supply glut concerns. Market reactions remain cautious amid geopolitical tensions.
By Georgina McCartney
HOUSTON (Reuters) -Oil prices steadied on Tuesday as investors weighed a smaller-than-expected increase to OPEC+ output in November against signs of a potential supply glut.
Brent crude futures settled down 2 cents, or 0.03%, to $65.45 a barrel. U.S. West Texas Intermediate crude was up 4 cents, or 0.06%, to $61.73.
Both contracts settled more than 1% up in the previous session after the Organization of the Petroleum Exporting Countries plus Russia and some smaller producers, together known as OPEC+, decided to increase collective oil production by 137,000 barrels per day, starting in November.
The move was in contrast to market expectations for a more aggressive increase, a sign that the group remains cautious in light of predictions for a global supply surplus in the fourth quarter as well as next year, said ING analysts.
Market sentiment remains subdued, in particular after Saudi Arabia opted to keep the official selling price of its flagship crude to Asia unchanged, defying analyst expectations for an increase, StoneX analyst Alex Hodes said in a note on Tuesday.
Meanwhile, the Abu Dhabi National Oil Company has set the November official selling price of its benchmark Murban crude at $70.22 a barrel, it said on Tuesday, up from October's OSP of $70.10/bbl.
On the demand side, India's fuel demand rose by 7% year-on-year in September, according to data from the Petroleum Planning and Analysis Cell of the country's oil ministry.
On the supply side, U.S. oil production is expected to hit a larger record of 13.53 million bpd this year, up from a prior forecast of 13.44 million bpd, the Energy Information Administration said on Tuesday.
Global oil inventories are also expected to rise through next year as non-OPEC+ countries lead oil output growth, according to the EIA, putting significant downward pressure on commodity prices in the months ahead.
JPMorgan said global oil inventories, including crude stored on water, have risen every week in September, adding 123 million barrels during the month.
China is building oil reserve sites at a rapid clip as part of a campaign to boost stockpiles, according to public data, traders and industry experts.
Geopolitical factors have kept a floor under prices, with conflict between Russia and Ukraine affecting energy assets and creating uncertainty over Russian crude supply.
Russia's Kirishi oil refinery halted its most productive distillation unit after a drone attack and subsequent fire on October 4, with recovery likely to take about a month, two industry sources said on Monday.
Investors are also awaiting U.S. oil stocks data, due later on Tuesday from the American Petroleum Institute.
"Right now the market is locked in a sideways pattern, waiting to see what happens with inventories," said Phil Flynn, a senior analyst at Price Futures Group.
(Reporting by Georgina McCartney in Houston, Enes Tunagur and Robert Harvey in London, Anjana Anil in Bengaluru and Siyi Liu in SingaporeEditing by Clarence Fernandez, David Goodman, Rod Nickel, Nia Williams and Deepa Babington)
OPEC+ is a coalition of oil-producing countries, including the Organization of the Petroleum Exporting Countries (OPEC) and other major producers like Russia, that coordinate oil production policies to stabilize or influence global oil prices.
Brent crude is a major trading classification of crude oil originating from the North Sea, serving as a global benchmark for oil prices and is used to price two-thirds of the world's oil.
West Texas Intermediate (WTI) is a grade of crude oil used as a benchmark in oil pricing, primarily produced in the United States, and is known for its light and sweet characteristics.
A supply glut occurs when the supply of a commodity exceeds demand, leading to a surplus that can drive prices down, often seen in markets like oil during periods of overproduction.
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