Oil prices inched higher on Monday after OPEC+ decided to pause planned production hikes in the first quarter of 2026, easing concerns over a potential supply glut. However, weak manufacturing data from Asia capped further gains. Brent crude rose 24 cents to $65.01 a barrel, while US West Texas Intermediate (WTI) gained 21 cents to $61.19. OPEC+ said it would maintain its December output increase of 137,000 barrels per day (bpd) and freeze production increments from January to March. Analysts said the move reflected the group's recognition of a likely surplus early next year, with uncertainties surrounding US sanctions on Russian oil flows and demand softness. Russia's oil exports also faced pressure after a Ukrainian drone attack on the Tuapse port caused a fire and damaged a ship. Despite recent price upticks, both Brent and WTI ended October more than 2 per cent lower, marking their third straight monthly decline. Analysts expect oil prices to remain under pressure as higher OPEC+ output and subdued global demand offset geopolitical risks. Attribution: Reuters
