Oil prices climbed in early Asian trading on Tuesday, extending gains after OPEC+ opted for a smaller-than-expected production increase. Traders are also keeping a close eye on potential new sanctions targeting Russia’s crude industry amid ongoing conflict with Ukraine.
Brent crude for November delivery rose 0.2% to $66.17 per barrel, while West Texas Intermediate (WTI) advanced 0.3% to $62.03 per barrel by 21:03 ET (01:03 GMT). Monday saw over 1% gains after the weekend OPEC+ decision helped ease concerns of a supply glut.
Potential for Stricter Sanctions on Russia
Western powers are reportedly considering tougher measures against Russia’s oil sector following Moscow’s largest air assault on Ukraine. U.S. President Donald Trump signaled readiness to implement a “second phase” of sanctions, though details remain unclear. He plans meetings with European leaders and further talks with Russian President Vladimir Putin.
Earlier, Trump imposed 50% tariffs on Indian imports to curb purchases of Russian oil, which he argued fund the war in Ukraine. India has not signaled compliance, and China—another major Russian oil buyer—remains unaffected by sanctions.
OPEC+ Output Hike Smaller Than Expected
OPEC+ will increase production by 137,000 barrels per day in October, far below previous monthly increases of 555,000 bpd in September and August, and 411,000 bpd in July and June. The modest rise suggests caution amid high output from non-OPEC+ producers, particularly the U.S., and concern over potential oversupply.
Dollar Weakness Supports Oil
A weaker U.S. dollar provided additional support for crude prices, following softer-than-expected U.S. payroll data that increased expectations for a potential interest rate cut by the Federal Reserve.
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