Oil prices rose in Asian trade on Tuesday, extending gains following a smaller than feared output hike by the OPEC+, while focus was also on more western sanctions against Russia’s crude industry.
Crude prices rose over 1% each on Monday following the OPEC’s decision over the weekend, which helped soothe some market concerns over a looming supply glut.
Traders were now watching for any more sanctions by the West on Russian oil, as hostilities between the country and Ukraine showed few signs of easing. U.S. President Donald Trump also signaled he was ready to further pressure Moscow into a ceasefire.
Brent oil futures for November rose 0.2% to $66.17 a barrel, while West Texas Intermediate crude futures rose 0.3% to $62.03 a barrel by 21:03 ET (01:03 GMT).
Tougher Russian sanctions in focus as Ukraine hostilities grow
Western powers were seen considering even tougher sanctions against Russia’s oil industry, after Moscow over the weekend launched its biggest ever air attack on Ukraine.
Trump signaled that he was ready to move on to the “second phase” of sanctions against Russia, although he did not specify what this would entail. The U.S. President said he was meeting with European leaders soon, and that he also intended to engage in more dialogue with Russian President Vladimir Putin.
While Trump has maintained a harsh rhetoric against Putin, he has so far allowed several self-imposed deadlines for punishing Moscow to pass without action. The two had met in Alaska in August, but had marked little progress towards a Russia-Ukraine ceasefire.
Trump had in late-August imposed 50% tariffs on India to curb its buying of Russian oil, which he claimed was single-handedly funding the Ukraine war.
But India has so far signaled that it will not cease its buying. Trump also declined to impose similar sanctions against China, another major buyer of Russian crude.
Oil heady on modest OPEC+ hike, softer dollar
Oil prices extended gains from Monday, after the Organization of Petroleum Exporting Countries and allies, also known as the OPEC+, agreed to hike production by 137,000 barrels per day from October.
The hike is much lower than monthly increases of about 555,000 bpd in September and August and the 411,000 bpd hike seen in July and June.
The October move indicated some caution in the OPEC+ over a looming supply glut in oil markets, especially amid high production in non-OPEC+ states such as the United States.
But the cartel has steadily increased production so far in 2025, as it moves to regain a greater market share and offset persistent oil price weakness with greater sales volumes.
Weakness in the dollar also benefited oil markets this week, as soft U.S. payrolls data from last week ramped up bets on a September interest rate cut by the Federal Reserve.
Source :
https://www.investing.com/news/commodities-news/oil-prices-extend-gains-after-small-opec-output-hike-russia-sanctions-eyed-4230402
