By: AGBI

Oil prices climbed on Monday in early trade, trimming some of last week’s losses, after Opec+ agreed over the weekend to raise output at a slower pace from October on expectations of weaker global demand.

Brent crude gained 34 cents, or 0.5 percent, to $65.84 a barrel by 00:47 GMT, while US West Texas Intermediate crude rose 30 cents, or 0.5 percent, to $62.17 a barrel.

Both benchmarks fell more than 2 percent on Friday as a weak US jobs report dimmed the outlook for energy demand. They lost more than 3 percent 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 as its leader Saudi Arabia pushes to regain market share, while slowing the pace of increases compared with previous months.

Opec+ has been increasing production since April after years of cuts to support the oil market, but the latest decision to boost output further came as a surprise amid a likely looming oil glut in the northern hemisphere winter months.

Eight members of Opec+ will lift production from October by 137,000 barrels per day, far below the monthly increases of about 555,000 bpd for September and August and 411,000 bpd in July and June.

“The oil market rebounded slightly, supported by relief over Opec+’s modest output hike and a technical bounce following last week’s decline,” said Toshitaka Tazawa, an analyst at Fujitomi Securities.

“Expectations of tighter supply from potential new US sanctions on Russia are also lending support,” he said, adding that downward pressure is likely to persist as Opec+ continues to raise production and supplies ease.