Crude oil and gasoline prices rose on Monday after OPEC+ announced a smaller-than-expected increase in production levels. Gains were supported by reduced Russian crude production due to a drone attack on the Kirishi oil refinery. The dollar index also reached a 1-week high, limiting crude gains.

OPEC+ agreed to a +137,000 bpd increase in crude production, below market expectations. Reduced Russian crude production due to a Ukrainian drone attack at the Kirishi oil refinery is bolstering oil prices. Ukrainian attacks have curbed Russia’s refined product flows to the lowest level in over 3 years.

Global crude oil stored on tankers decreased by -7% to 82.81 million bbl, supporting oil prices. Last week, crude oil and gasoline hit multi-month lows due to expectations of increased OPEC+ production. OPEC’s September production reached a 2.5-year high.

The International Energy Agency forecasts a record global oil surplus of 3.33 million bpd next year, putting pressure on crude prices. Iraq’s agreement to resume oil exports from the Kurdish region could add 500,000 bpd to global supplies.

Concerns about the war in Ukraine potentially leading to sanctions on Russian energy exports are supporting crude prices. The US proposed tariffs on China and India for buying Russian oil to pressure Russia to end the war.

US crude oil inventories are below 5-year averages, while production remains steady. The number of active US oil rigs fell slightly, but remains above recent lows.

Read more at Yahoo Finance: Crude Prices Move Higher on a Smaller-Than-Expected OPEC+ Production Hike