Crude oil prices climbed on Monday following reports that the upcoming OPEC+ supply hike for October will be smaller than initially expected. Geopolitical tensions in Ukraine have also fueled speculation about additional sanctions on Russian crude.
WTI trades higher
The US benchmark West Texas Intermediate (WTI) rose about $1 during early trading, reaching intra-day highs near $62.80, approaching Friday’s high of $63.25.
OPEC+ agrees on smaller-than-expected supply hike
OPEC+, the coalition of OPEC members plus Russia and allied producers, announced a 137,000 barrels-per-day (bpd) increase for October. This is significantly below the 555,000 bpd and 411,000 bpd hikes approved in September and August, respectively, reflecting a more cautious approach to supply management.
US sanctions on Russia add upside risk
US President Donald Trump indicated readiness to impose a second round of sanctions on Russia in response to weekend attacks on Ukraine that killed four people and damaged government buildings in Kyiv. Markets are also speculating on potential extensions of trade measures similar to last month’s 50% tariff on Russian oil imports from India, potentially affecting other buyers of Russian crude.
