OPEC+ to Moderate Oil Output Increase Amid Oversupply Fears and Sanctions

OPEC+ is poised to modestly increase oil output targets in December amidst concerns over a market oversupply and new Western sanctions on Russia. The group has agreed in principle to a 137,000 barrel per day increase, set to be confirmed in an upcoming virtual meeting.

OPEC+ is expected to approve a modest increase in its oil output targets at a virtual meeting this Sunday, according to three sources familiar with the discussions. The group is set to raise December targets by 137,000 barrels per day amidst fears of an oversupply and new sanctions on Russia.

This decision comes as OPEC+ cautiously moderates its attempts to regain market share after increasing output targets by over 2.7 million barrels per day since April. However, the pace of these increases has slowed in October and November to address concerns of a looming oil glut.

The discussions are further complicated by new Western sanctions on Russia, an OPEC+ member, which may affect Moscow's ability to boost production. Amid this backdrop, oil prices recently dropped to a five-month low of $60 a barrel before recovering to around $65 due to sanctions on Russia and trade optimism.

(With inputs from agencies.)