Oil prices surged more than $1 a barrel in early Monday trading following OPEC+’s decision to maintain a modest production increase in July, easing concerns of a larger supply boost.
Brent crude futures rose by $1.34, or 2.13%, to $64.12 a barrel as of 0346 GMT, recovering from a 0.9% dip on Friday. Meanwhile, U.S. West Texas Intermediate (WTI) crude climbed $1.52, or 2.5%, to $62.31, following a slight 0.3% loss in the previous session.
Both global benchmarks had posted over 1% weekly losses last week, driven by speculation over a more aggressive production ramp-up.
However, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, decided on Saturday to raise output by 411,000 barrels per day in July. This marks the third consecutive month of such an increase, as the group attempts to reclaim market share and discipline over-producing members.
The market had braced for a possible larger hike, but the measured approach brought relief to traders and signaled that OPEC+ is prioritizing market stability over aggressive expansion.
