Algeria, Russia Affirm Commitment to Energy Market Stability within OPEC+ Framework, Algeria Says

OPEC logo is seen in this illustration taken, October 8, 2023. REUTERS/Dado Ruvic/File Photo

Algeria and Russia have reaffirmed their commitment to contribute to oil and gas market stability within the OPEC+ framework, Algeria's energy ministry said on Monday.
OPEC+ flagged plans to further increase production from October but the amount was less than some analysts had anticipated. Reuters had reported earlier this month that members were considering another hike.
"The market had run ahead of itself in regard to this OPEC+ increase," said Ole Hansen, head of commodity strategy at Saxo Bank. "Today we're seeing a classic sell the rumour, buy the fact reaction."
Brent crude climbed $1.13, or 1.7%, to $66.63 a barrel by 1308 GMT, while US West Texas Intermediate crude rose $1.02, or around 1.7% to $62.89 a barrel.
Both benchmarks fell more than 2% on Friday as a weak US jobs report dimmed the outlook for energy demand. They lost more than 3% last week.
OPEC+, which includes the Organization of the Petroleum Exporting Countries plus Russia and other allies, agreed on Sunday to further raise oil production from October.
OPEC+ has been increasing production since April after years of cuts aimed at supporting the oil market. The latest decision comes despite a likely looming oil glut in the Northern Hemisphere winter months.
The eight members of OPEC+ will lift production from October by 137,000 barrels per day. That, however, is much lower than increases of about 555,000 bpd for September and August and 411,000 bpd in July and June.
The impact of the latest increase is expected to be relatively low, because some members have been overproducing. So the higher output level would likely include barrels that are already in the market, analysts said.