Oil prices rise supported by OPEC+ production plans

SadaNews - Oil prices rose by more than 1.5% in today's trading on Monday, after the OPEC+ alliance renewed its commitment yesterday to halt any increases in production during the first quarter of next year, in addition to indications that the U.S. may take new actions against Venezuela, raising further concerns in the market.

Brent crude recorded an increase of about 1.6% to $63.46 per barrel, while U.S. West Texas Intermediate rose 1.8% to $59.62 per barrel.

OPEC and its allies agreed in November to suspend production increases, in a move aimed at reducing oversupply and restoring balance in the market.

The organization confirmed, following its meeting yesterday, "the importance of adopting a cautious approach and maintaining full flexibility to continue suspending or rolling back any additional voluntary production adjustments when necessary.".

Vivek Dar, an analyst at the Commonwealth Bank of Australia, stated that the results of the meeting were "widely expected" in light of the previous decision, adding in a client note that "market concerns regarding global oversupply played a fundamental role in OPEC+'s stance," according to Reuters.

Increased uncertainty was also noted following U.S. President Donald Trump's move towards closing Venezuelan airspace, a step that could impact the exports of one of South America's leading producers.

Analysts at "ING" wrote in a client note that "the rising risks to Venezuelan oil supplies come after President Trump's announcement that he is considering the option of closing airspace over the country.".

In Europe, the increasing uncertainty surrounding the peace agreement between Russia and Ukraine dispelled the optimism that had prevailed over the past two weeks, after the agreement seemed imminent, which had boosted expectations for a return of greater flows of sanctioned Russian oil to the global market.