Oil rises 2% after OPEC+ decides to suspend production hikes

Oil drilling rigs

Oil prices rose after OPEC+ suspended production increases until the end of the first quarter of next year. In addition, supply concerns came to fore after the Caspian Pipeline Alliance halted exports following a drone attack.

Brent crude was trading up 2% at $63.62 a barrel, at 08:58 am Makkah time. West Texas Intermediate (WTI) jumped 2.1% to $59.77 a barrel.

Anh Pham, Analyst at LSEG, told Reuters that the OPEC+ decision on Nov. 30 eased pressures related to concerns about oversupply and helped to calm expectations of supply growth in the coming months.

Meanwhile, ING analysts wrote in a note that supply risks have increased with the escalation of Ukrainian attacks on Russian energy infrastructure, with the Caspian Pipeline Alliance announcing a halt to operations after one of the loading berths at its Russian terminal on the Black Sea was damaged.