Oil climbs as OPEC+ holds output steady and supply risks rise

Oil prices moved higher Monday after OPEC+ confirmed it would keep production levels unchanged, easing concerns about an oversupplied market. The gains were reinforced by new supply risks, including a halt in exports from the Caspian Pipeline Consortium following a major drone strike and rising U.S.–Venezuela tensions.

Brent crude rose to $63.39 a barrel and U.S. West Texas Intermediate reached $59.55. The increase followed four straight monthly declines driven by expectations of growing global supply.

OPEC+ said it would maintain a cautious stance and keep flexibility to pause or reverse voluntary cuts if needed. Analysts said the decision, widely expected, helped stabilize expectations for supply growth.

Fresh geopolitical concerns added to the market’s support. The White House’s comments on Venezuelan airspace created uncertainty involving a major oil-producing country, while Ukrainian drone attacks on Russian energy sites heightened worries over disruptions. The Caspian Pipeline Consortium’s shutdown, affecting more than 1% of global supply, further fueled concerns.

In Europe, renewed doubts about a potential Russia-Ukraine peace deal reversed some of the recent bearish sentiment tied to expectations of increased Russian exports.