Oil prices rose on Monday after OPEC+, led by Saudi Arabia, announced a pause to planned production increases in the first quarter of 2026.
Brent crude, the international benchmark, was up 0.5% at $65.10 a barrel, while WTI gained 0.5% to $61.31 in early trading.
The decision follows growing concerns over a global supply glut, with the International Energy Agency (IEA) estimating current output at 108 million barrels per day — around 3 million barrels above demand. The IEA has attributed the recent slide in oil prices to this oversupply, which has seen crude fall roughly 10% over the past three months.
In a statement, OPEC+, which includes Russia, Saudi Arabia, and Iraq, confirmed:
“Beyond December, due to seasonality, the eight countries also decided to pause the production increments in January, February, and March 2026.”
The move indicates that the group does not expect U.S. sanctions efforts under Donald Trump’s incoming administration to significantly affect Russian oil exports.
Meanwhile, UAE Energy Minister Suhail Al Mazrouei sought to downplay fears of oversupply, telling reporters in Abu Dhabi:
“I’m not going to talk about an oversupply scenario. I can’t see that. And I think all of what we are seeing is more demand.”
BP and Shell lift FTSE 100 as oil prices rise on OPEC+ supply pause
The FTSE 100 edged 0.2% higher in early Monday trading, supported by gains in energy stocks following OPEC+’s decision to pause planned production increases.
BP (LON:BP.) rose 1.3% to 448p, while Shell (LON:SHEL) advanced 0.9% to £28.73, helping to lift the blue-chip index.
BP shares were further buoyed by news that the company has sold its U.S. shale assets in the Permian and Eagle Ford regions to Sixth Street, an American investment firm, in a $1.5 billion deal.
The rise in oil majors mirrored stronger Brent crude prices, which climbed after OPEC+ confirmed it would halt output increases in early 2026 to stabilise the market amid concerns of oversupply.
