Oil prices remained steady in Asian trading on Tuesday, holding onto gains from the previous session as investors assessed the impact of a smaller-than-expected OPEC+ output hike planned for next month.
As of 01:44 GMT (21:44 ET), Brent crude futures for September rose 0.2% to $65.60 per barrel, while West Texas Intermediate (WTI) gained 0.2% to $61.80 per barrel. Both benchmarks had climbed more than 1% on Monday, rebounding from last week’s losses after OPEC+ confirmed a modest production increase — easing concerns about a sudden supply glut.
OPEC+ keeps cautious stance on oil supply
The OPEC+ alliance, which includes Russia, said it would raise production by only 137,000 barrels per day, maintaining the measured approach first adopted in October. The move reassured traders that the group remains focused on price stability rather than market dominance.
“The group is staying cautious as it anticipates a potential supply surplus later this year and into 2026,” analysts at ING noted.
The International Energy Agency (IEA) has also warned of a record surplus by 2026 if OPEC+ and major non-OPEC producers such as the U.S. and Brazil continue to expand output. The IEA estimates that global production could increase by over 2 million barrels per day next year, while demand is expected to remain weak in China and Europe due to slowing economic growth.
Geopolitical tensions add support to oil prices
Oil markets also found support from geopolitical risks after Ukraine intensified drone attacks on Russian energy facilities, including refineries in Kirishi and Ryazan. The strikes disrupted fuel processing and tightened Russian export capacity, lifting short-term oil sentiment.
Meanwhile, the ongoing U.S. government shutdown, in effect since October 1, has delayed key economic data releases, making traders cautious about the Federal Reserve’s policy outlook. The uncertainty has tempered bullish momentum in crude markets, as concerns grow over a potential economic slowdown.
