Oil prices rose after OPEC+ decided to limit production increases and delay further hikes in early 2026 due to demand uncertainty. Brent traded at $65.12, up 0.54%, and West Texas Intermediate at $61.33, up 0.57%. OPEC+ agreed to a modest production increase in December and paused further hikes in the first quarter of 2026, citing “seasonality” and weaker demand.

The decision was met with mixed reactions from the market, with some seeing it as supporting prices by limiting supply, while others view it as a sign of OPEC+ caution due to demand softness, particularly in Asia. External risks from tighter U.S. sanctions on Russian oil producers and robust global output from non-OPEC producers, like U.S. shale, continue to impact market dynamics.

Trump’s threats of military action in Nigeria and Venezuela add to the complexities in the oil market, raising the risk of supply disruptions in two major oil-producing countries. The combination of demand uncertainty, external risks, and geopolitical tensions continues to influence oil prices globally.

By Charles Kennedy for Oilprice.com.

Read more at Yahoo Finance: Oil Prices Edge Higher After OPEC+ Pauses Output Hikes in Early 2026