Oil prices continued to rise in Asian trading on Tuesday, building on Monday’s gains after OPEC+ announced a smaller-than-expected increase in production. Investors were also closely monitoring the potential for additional Western sanctions on Russia’s crude sector amid escalating tensions with Ukraine.
Brent crude for November delivery edged up 0.2% to $66.17 per barrel, while West Texas Intermediate (WTI) rose 0.3% to $62.03 per barrel by 21:03 ET (01:03 GMT). Monday’s gains of more than 1% followed the weekend OPEC+ decision, easing some concerns over an oversupplied market.
Sanctions on Russia in the Spotlight
Western nations are considering tougher measures targeting Russia’s oil industry after Moscow launched its largest air strike on Ukraine over the weekend. U.S. President Donald Trump indicated he was prepared to escalate sanctions against Russia but did not detail specific actions. He also noted plans to meet with European leaders and engage further with Russian President Vladimir Putin.
Despite strong rhetoric, previous deadlines for punitive action against Moscow have passed without major enforcement. Trump previously met with Putin in Alaska in August, yet little progress has been made toward a ceasefire. In late August, Trump imposed 50% tariffs on Indian imports to reduce Russian oil purchases, blaming such sales for funding the Ukraine conflict. India has resisted halting its purchases, while China—another major Russian crude buyer—has not faced similar penalties.
Modest OPEC+ Output Increase Supports Prices
Oil markets were buoyed by OPEC+’s decision to increase production by 137,000 barrels per day starting in October, a modest rise compared with previous monthly hikes of 555,000 bpd in September and August, and 411,000 bpd in July and June. The smaller increase reflects caution over potential oversupply, particularly with strong output from non-OPEC+ producers such as the U.S.
Throughout 2025, OPEC+ has gradually raised production to regain market share and counter weak oil prices with higher sales volumes.
Dollar Weakness Adds Support
A softer U.S. dollar also helped lift oil prices, following weaker-than-expected payroll data last week that fueled expectations for a possible Federal Reserve interest rate cut in September.
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