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(Reuters) – Oil prices climbed by over 1% on Wednesday, helped by a smaller than expected output hike from producer group OPEC+ next month, though concerns about oversupply capped further gains.
Brent crude futures rose 82 cents, or 1.3%, to $66.27 a barrel by 0945 GMT. U.S. West Texas Intermediate crude climbed 85 cents, or 1.4%, to $62.58.
The benchmarks settled broadly flat in the previous session as investors weighed signs of a supply glut against a smaller-than-expected increase to November output from the Organization of the Petroleum Exporting Countries and allies led by Russia, or OPEC+.
“The bare minimum that OPEC+ decided to get away with on Sunday still provided some support,” PVM oil analyst Tamas Varga said in a note on Wednesday.
OPEC+ agreed to raise its output targets for November by 137,000 barrels per day (bpd) for November on growing concerns about a looming glut in the oil market, sources from the group told Reuters.
Goldman Sachs said it saw an inventory build of 1.5 million bpd in the last quarter despite strong seasonal demand. The bank expects a surplus of 2 million bpd over the period from Q4 2025 to Q4 2026.
But it sees an upside risk for prices from declines to Russian production.
Investors are also awaiting U.S. inventory data from the Energy Information Administration later on Wednesday.
On Tuesday, sources citing American Petroleum Institute figures said U.S. crude stocks rose by 2.78 million barrels in the week ended October 3.
Conversely, gasoline and distillate inventories fell, the sources said, citing the API data.
Meanwhile, U.S. oil production is likely to set a larger record this year than previously expected, the EIA said on Tuesday.
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