Oil Prices Rise as OPEC+ Pauses Output Hikes and Ukraine Strikes Russian Oil Port

Oil prices climbed in Asian trading on Monday after the Organization of the Petroleum Exporting Countries and allies (OPEC+) announced plans to pause production increases in the coming quarter. The move came amid growing concerns about an oversupply in the market and weaker global demand, helping stabilize prices that had previously faced downward pressure.

Brent crude futures for January rose 0.6% to $65.18 per barrel, while West Texas Intermediate (WTI) crude gained 0.7% to $61.01 by 19:00 ET (00:00 GMT). The decision by OPEC+ to hold off on further production hikes in early 2026 followed a small increase of 137,000 barrels per day in December, consistent with the levels set for October and November. Overall, the group has raised output by about 2.9 million barrels per day in 2025, largely reversing the supply cuts implemented over the past two years to regain market share and offset low oil prices.

The cartel cited concerns about a potential supply glut and sluggish demand in the first quarter of 2026, traditionally one of the weakest periods for global oil consumption. Despite recent price gains, crude markets remain sensitive to signs of slowing economic growth and geopolitical tensions that could disrupt supply chains.

Adding to price support, Ukrainian forces launched a strike on one of Russia’s main Black Sea oil ports on Sunday, escalating fears of further disruptions in global energy supply. The attack, part of Kyiv’s broader strategy to undermine Russia’s war operations, followed Russian airstrikes on Ukraine’s Zaporizhzhia region that caused widespread power outages.

Meanwhile, U.S. sanctions on major Russian oil firms have tightened supply expectations, though analysts remain cautious as Russia has previously circumvented restrictions. Ongoing geopolitical risks and OPEC+ production restraint are expected to keep oil markets on edge in the near term.