Categories: Energy

Oil prices jump 1.5% after OPEC+ output hike

Oil prices increased on Monday, October 6, 2025, after OPEC+ announced a more modest monthly increase in production than expected.

Brent crude futures rose 91 cents, or 1.4%, to $65.44 a barrel by 0315 GMT, while U.S. West Texas Intermediate crude was at $61.77, up 89 cents, or 1.5%.

“The price jump has primarily been boosted by OPEC+’s decision for a lower-than-expected production hike next month as the group intended to buffer the recent slump in oil markets,” independent analyst Tina Teng told Reuters.

On Sunday, the Organization of the Petroleum Exporting Countries plus Russia and some smaller producers said it would raise production from November by 137,000 barrels per day (bpd), the same modest monthly increase as in October, amid persistent concerns over a looming supply glut.

OPEC+ to raise oil production in November

In the run-up to the meeting, sources said Russia was advocating for an output increase of 137,000 bpd to avoid pressuring prices, but Saudi Arabia would have preferred double, triple or even quadruple that figure to regain market share more quickly.

However, analysts expect weak demand fundamentals in the fourth quarter to cap near-term price gains.

A senior market analyst at Phillip Nova, Priyanka Sachdeva, said: “With the absence of any fresh bullish catalysts and growing ambiguity on the demand outlook, oil prices are likely to stay capped despite OPEC+’s smaller-than-feared output hike.

“The reality is that the market is gradually shifting toward a phase of oversupply, with seasonal demand expected to taper off into winter and macro data offering little upside impulse.”

The Star

Segun Ojo

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