Finance
Oil rises as oversupply fear eases after OPEC+ restrains output increase
Published by Global Banking & Finance Review®
Posted on October 8, 2025
2 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on October 8, 2025
2 min readLast updated: January 21, 2026
Oil prices increased as OPEC+ restrained output, easing oversupply fears. Brent and U.S. crude saw gains, with market reactions mixed.
By Jeslyn Lerh
SINGAPORE (Reuters) -Oil prices rose on Wednesday as investors brushed off oversupply fears, having digested a decision earlier by OPEC+ to restrain production increases next month.
Brent crude futures rose 48 cents, or 0.7%, to $65.93 a barrel by 0400 GMT. U.S. West Texas Intermediate crude climbed 51 cents, or 0.8%, to $62.24.
The benchmarks settled broadly flat in the previous session as investors weighed signs of a supply glut against a smaller-than-expected increase to November output from the Organization of the Petroleum Exporting Countries and affiliates.
"The market is in price limbo, with one side bent towards a possible supply glut and the other believing the ramp-up will not be as fast as anticipated," said Emril Jamil, a senior analyst at LSEG Oil Research.
Prices are trading higher for now as some traders are holding long positions, or bets that prices will rise, on continued efforts to curb Russian crude flows, Jamil added.
OPEC+ had opted for a rise of 137,000 barrels a day, the lowest amount among options the group discussed at the weekend.
"Until the physical market shows signs of softening via rising inventories, investors are likely to discount the impact of the production increases," ANZ analysts said on Wednesday.
Price gains are however capped as fears of Russian supply disruption eased, with crude oil shipments holding close to a 16-month high over the past four weeks, the ANZ analysts said.
Investors are also awaiting U.S. inventory data from the Energy Information Administration later on Wednesday.
On Tuesday, sources American Petroleum Institute figures said U.S. crude stocks rose by 2.78 million barrels in the week ended October 3.
Conversely, gasoline and distillate inventories fell, the sources said, citing the API data.
Meanwhile, U.S. oil production is likely to set a larger record this year than previously expected, the EIA said on Tuesday.
(Reporting by Jeslyn Lerh; Editing by Christopher Cushing and Christian Schmollinger)
OPEC+ is a group of oil-producing countries that includes the Organization of the Petroleum Exporting Countries (OPEC) and other major oil producers, working together to regulate oil production and stabilize prices.
Crude oil futures are contracts to buy or sell a specific amount of crude oil at a predetermined price on a specified future date, allowing traders to hedge against price fluctuations.
A supply glut occurs when the supply of a commodity, such as oil, exceeds demand, leading to lower prices and potential economic challenges for producers.
U.S. inventory data refers to the weekly report from the Energy Information Administration that tracks the levels of crude oil and petroleum products held in storage, influencing market prices.
Long positions refer to investments where a trader buys an asset with the expectation that its price will rise, allowing them to sell it later for a profit.
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