Market News

Oil prices rebounded in early Asian trade on Monday following the latest OPEC+ meeting, as traders responded to the producer group’s decision to hold output steady through the first quarter of 2026.

At the time of writing, West Texas Intermediate crude stood at $59.32, up 1.32%, while Brent crude had climbed to $63.16, up 1.25%.

The bounce reflects relief over the group’s cautious stance, with OPEC+ reaffirming its plan to maintain current production levels rather than raise output further. The move had been expected and is seen as an attempt to guard against a supply glut.

The decision comes amid growing concerns that the global oil market remains oversupplied, with multiple market participants and analysts expecting a glut in 2026. The group is still holding some 3.24 million barrels per day of production offline, with 1.24 million bpd of that being the voluntary cuts that the group has been unwinding this year.

That said, prices remain far below earlier 2025 levels, as a global surplus looms driven by rising production from both OPEC+ and non-OPEC producers, as well as weak demand growth.

Despite today’s uptick, fundamental headwinds are still in place. Oversupply concerns, compounded by uncertainty over demand and potential return of sanctioned barrels to the market, are likely to keep a lid on sustained price rallies in the near term.

By Charles Kennedy for Oilprice.com