Oil prices rose more than 1% on Wednesday (October 8th), boosted by a smaller-than-expected production increase from the OPEC+ producer group next month, although concerns about oversupply limited further gains.

Brent crude futures rose 82 cents, or 1.3%, to $66.27 a barrel at 09:45 GMT. U.S. West Texas Intermediate crude rose 85 cents, or 1.4%, to $62.58.

Benchmark crude prices were relatively stagnant in the previous session as investors weighed signs of oversupply against a smaller-than-expected November production increase from the Organization of the Petroleum Exporting Countries (OPEC+) and its allies led by Russia.

"The minimum levels that OPEC+ decided to maintain on Sunday still provide some support," said PVM oil analyst Tamas Varga in a note on Wednesday. OPEC+ agreed to raise its November production target by 137,000 barrels per day (bpd) amid growing concerns about a possible oversupply in the oil market, sources within the group told Reuters.

Goldman Sachs said it saw an inventory increase of 1.5 million bpd in the last quarter despite strong seasonal demand. The bank forecasts a surplus of 2 million bpd for the period from Q4 2025 to Q4 2026.

However, it sees upside risks to prices due to declining Russian production.

Investors are also awaiting US inventory data from the Energy Information Administration (EIA) due later Wednesday. On Tuesday, sources citing data from the American Petroleum Institute (API) said that US crude oil stocks rose by 2.78 million barrels in the week ending October 3.

Conversely, gasoline and distillate inventories fell, the sources said, citing API data. Meanwhile, US oil production is likely to reach a record high this year, compared to previously estimated levels, the EIA said on Tuesday. (alg)

Source: Reuters.com