Oil up after OPEC+ keeps production unchanged

WTI crude oil futures rose nearly 2% to $59.6 per barrel on Monday, marking their highest level in more than a week, after OPEC+ reaffirmed its decision to suspend production increases during the first quarter of next year.

The coalition on Sunday confirmed the three-month halt initially outlined in early October, as it continues to grapple with uneven demand trends and what many members see as a looming oversupply in 2026.

The decision underscores the group’s cautious approach, with producers seeking to avoid adding pressure to a market already weighed down by rising non-OPEC supply and slowing consumption in key economies.

Market participants also weighed fresh geopolitical risks after US President Donald Trump intensified his warnings toward Venezuela over the weekend, declaring the nation’s airspace “closed” before later softening his stance.

The heightened rhetoric briefly fueled concerns about potential disruptions in regional oil flows, although no immediate policy actions followed.

Still, analysts note that upside momentum for crude remains limited. Hopes for progress in a Russia-Ukraine peace agreement continue to cap gains, as any breakthrough could eventually lead to the lifting of sanctions on Russian crude. Such a move would bring additional barrels to the global market, reinforcing expectations of ample supply.

Oil prices wrapped up November with a fourth consecutive monthly decline, the longest losing streak since 2023. Persistent worries about a supply glut, driven by rising production in the United States and other non-OPEC nations, have kept the market under pressure despite intermittent geopolitical tensions.

With demand signals still mixed and the supply outlook uncertain, traders remain cautious heading into year-end.