Oil prices climbed on Tuesday after OPEC+ announced a smaller than expected output hike, rising geopolitical risks tied to Russia, and strong demand from China.
Brent crude gained 47 cents (0.7%) to $66.49 a barrel, while U.S. West Texas Intermediate rose 72 cents (1.2%) to $62.98. OPEC+ agreed to increase output by just 137,000 barrels per day in October a sharp slowdown from the 550,000 bpd added in August and September.
Analysts say prices are supported by expectations that the actual production increase may fall short, as well as China’s ongoing oil stockpiling of 0.5 million barrels per day. Reduced spare capacity within OPEC+ adds further pressure, limiting its ability to offset supply shocks. Meanwhile, tensions rose over possible new sanctions on Russia following its latest attack on Ukraine. A potential U.S. interest rate cut next week could also boost oil demand.
