Oil prices climbed more than 1% in Asian trading on Monday, supported by OPEC+’s decision to keep output steady in the first quarter and by growing concerns over supply disruptions linked to geopolitical tensions.
As of 20:52 ET (01:52 GMT), February Brent futures were up 1.2% at $63.13 per barrel. West Texas Intermediate (WTI) crude futures also rose 1.2% to $59.27 per barrel.
OPEC+ keeps output pause in place
OPEC and its allies reaffirmed on Sunday that they will maintain their pause on production increases through the first quarter of next year. The group will continue voluntary cuts totaling about 3.24 million barrels per day.
The coalition signaled a cautious stance as it faces uneven demand patterns and the risk of oversupply in 2026. It also agreed on a plan to review member production capacities between January and September 2026. This assessment will help determine new baseline quotas for 2027.
According to ING analysts, the review process could spark disagreements among members, with many seeking higher production baselines.
Traders weigh rising supply risks
Oil markets also faced new supply concerns after U.S. President Donald Trump said he was considering closing U.S. airspace over Venezuela. Analysts noted that tensions have escalated, with U.S. forces striking vessels accused of carrying drugs and increasing their regional presence.
Venezuela exports around 800,000 barrels per day, most of which goes to China. Any further escalation could threaten this supply.
Additional upward pressure on crude came from attacks over the weekend on Russian energy infrastructure. These incidents disrupted export operations and added to global supply worries.
The Caspian Pipeline Consortium (CPC), which ships Kazakh and Russian crude through the Black Sea, said it paused loadings after a naval drone strike damaged a mooring point at its Novorossiysk terminal. The CPC has averaged 1.48 million barrels per day in shipments this year, supported by expanded output from Kazakhstan’s Tengiz field.
