By: Economy Middle east

Oil prices climbed on Monday after OPEC+ reiterated its commitment to maintaining current production levels. Prices were further supported by the Caspian Pipeline Consortium’s suspension of exports following a significant drone strike, combined with escalating U.S.–Venezuela tensions, which added to concerns over potential disruptions.

By 6:24GMT, Brent crude futures were up $1.27, or 2.04 percent, at $63.65 a barrel, while U.S. West Texas Intermediate rose $1.23, or 2.10 percent, to $59.78.

Despite the uptick, both benchmarks had closed lower on Friday, marking a fourth consecutive monthly decline and their longest slide since 2023, driven by expectations of increased global output.

OPEC+ keeps oil production levels steady

The Organization of the Petroleum Exporting Countries and its allies had first agreed to a production pause in early November, tempering efforts to recapture market share amid mounting concerns over a potential oversupply. Oil prices rose after the group agreed on Sunday to keep oil production levels steady through the first quarter of 2026.

The group also said it had endorsed a new mechanism to evaluate each member’s maximum production capacity. The assessment will be used to establish output baselines from 2027 onward, forming the benchmark against which future production targets will be determined.

Following its meeting on Sunday, OPEC+ said it had “reaffirmed the importance of adopting a cautious approach and retaining full flexibility to continue pausing or reverse the additional voluntary production adjustments.”

Geopolitical risks boost oil prices

Adding further momentum to oil prices, U.S. President Donald Trump declared on Sunday that the airspace above and surrounding Venezuela should be considered closed, adding fresh uncertainty in oil markets given the country’s role as a key producer.

Trump said on Sunday that he had spoken with Venezuelan President Nicolas Maduro but offered no details about their conversation. He also declined to clarify whether his remarks on Venezuelan airspace hinted at possible military action.

In addition, the Caspian Pipeline Consortium announced on Saturday that it had suspended operations after a mooring at its Black Sea terminal in Russia was damaged in a Ukrainian drone strike. The consortium transports more than 1 percent of the world’s oil.

In Europe, fading optimism over a potential Russia-Ukraine peace agreement has shifted market sentiment, reversing the bearish tone seen over the past two weeks when a breakthrough appeared within reach and raised fears that a peace deal could unleash a surge of Russian crude onto global markets.

Ukraine’s military said on Saturday that it had struck a Russian oil refinery along with the Beriev military aviation plant in the Rostov region.