Oil prices rose after OPEC+ agreed to a modest production increase, alleviating traders' concerns about massive supply additions.

Brent crude climbed above $65 per barrel, while West Texas Intermediate approached $62 per barrel. During Sunday's meeting, OPEC and its allies including Russia endorsed a production increase of 137,000 barrels per day, significantly below some previous market expectations.

Chris Weston, Head of Research at Pepperstone Group, stated that the decision was "clearly at the low end of market expectations." He attributed the oil price gains to traders adjusting tactical positions after previously betting on larger production increases. He also noted that OPEC+'s production increase "does not help address concerns about market oversupply in 2026, so the scope for this rally should be limited."

Crude oil prices have declined this year amid concerns that global supply will soon exceed demand, with Brent crude falling 8% last week. The International Energy Agency forecasts a record annual surplus in 2026. Many Wall Street banks also predict oil prices will decline in the coming months.