Oil rallied as the Organization of Petroleum Exporting Countries agreed to a small production increase in September.
West Texas Intermediate traded near $96 a barrel, moving higher after earlier declining as much as 1.5%.
OPEC and its allies will lift supply by just 100,000 barrels a day, a tiny fraction of the group’s overall output and a far smaller increase than it has added in recent months. While that was generally in line with a Bloomberg survey of traders and analysts who had expected the alliance them to keep output steady, it will provide little relief for oil market tightness.
The muted additions to supply come after oil sank to the lowest close in more than five months earlier this week, giving up the bulk of the gains seen since Russia’s invasion of Ukraine. That drop came as investors fret about a global economic slowdown and on signs that some of the extreme strength in crude markets over recent months may be easing.