Oil prices rise as Opec+ agrees to raise output at slower pace from October

The Organisation has been increasing production since April after years of cuts to support the oil market

Oil prices rose on Monday (Sep 8) in early trade, paring last week’s losses, after Opec+ agreed over the weekend to raise output further but at a slower pace from October due to an anticipated weakening of global demand.

Brent crude gained 23 US cents, or 0.4 per cent, to US$65.73 a barrel by 2213 GMT, while US West Texas Intermediate crude climbed 21 US cents, or 0.3 per cent, to US$62.08 a barrel.

Both benchmarks fell over 2 per cent on Friday as a weak US jobs report dimmed the outlook for energy demand. They lost more than 3 per cent last week.

Opec+, which includes the Organization of the Petroleum Exporting Countries plus Russia and other allies, has agreed to further raise oil production from October as its leader Saudi Arabia pushes to regain market share, while slowing the pace of increases compared with previous months.

Opec+ has been increasing production since April after years of cuts to support the oil market, but the Sunday decision to further boost output came as a surprise amid a likely looming oil glut in the northern hemisphere winter months.

Eight members of Opec+ agreed on Sunday in an online meeting to raise production from October by 137,000 barrels per day (bpd), it said, much lower than the monthly increases of about 555,000 bpd for September and August and 411,000 bpd in July and June. REUTERS