Oil prices edged higher on Wednesday as markets reacted to OPEC+ production decisions and possible effects of Russian sanctions on major buyers that eased oversupply concerns, while optimism that a resolution could be reached in US-China trade disputes boosted demand expectations.
International benchmark Brent crude was trading at $64.43 per barrel at 09.20 a.m. local time (0620 GMT), up around 0.4% from the previous close of $64.19.
US benchmark West Texas Intermediate (WTI) also increased by about 0.5% to $60.51, compared to $60.23 in the prior session.
The eight members of the OPEC+ group, comprising Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman, agreed on Sunday to raise oil production by 137,000 barrels per day (bpd) in December, while pausing further increases from January to March 2026 due to seasonality.
Market analysts say the decision is aimed at preventing a supply glut, but with global demand growth slowing, the upside for prices in the short term remains constrained.
Reports that US sanctions on Russian crude exports led to tighter flows helped ease oversupply concerns, although market participants remain doubtful that the restrictions will prevent Russian oil from finding buyers.
Optimism over a potential resolution in US-China trade disputes is also easing weak demand concerns, contributing further upward movement on oil prices as traders factor in the possibility of increased consumption in two of the world's largest energy markets.
Despite these factors, market participants note that US crude inventories remain high and the strong US dollar continues to limit price gains.
The American Petroleum Institute (API) reported an unexpected 6.5 million-barrel increase in US crude stocks for the week ending Nov. 1, defying market expectations for a 2.4 million-barrel draw, signaling weaker-than-anticipated demand and adding downward pressure on prices.
Official figures from the US Energy Information Administration are expected later in the day.
Strength in the US dollar, supported by uncertainty over a potential December Federal Reserve interest rate cut, has also pressured oil markets by making dollar-denominated crude more expensive for holders of other currencies.
By Firdevs Yuksel
Anadolu Agency
energy@aa.com.tr
