Baghdad: Oil prices rose in early Asian trading on Monday after the OPEC+ group decided to suspend production increases in the first quarter of next year, easing growing concerns about oversupply. Brent crude futures rose 47 cents, or 0.73%, to $65.24 a barrel by 2336 GMT, after closing 7 cents higher on Friday. U.S. West Texas Intermediate crude futures rose 45 cents, or 0.74%, to $61.43 a barrel, after closing 41 cents higher in the previous session.

According to National Iraqi News Agency, the decision by OPEC+ to halt planned production increases comes as a strategic move to stabilize the market amid fluctuating demand patterns. This intervention is viewed as a preventive measure to maintain price stability and support the global economy’s recovery trajectory, especially as nations grapple with varying stages of pandemic recovery.

The response in the oil markets indicates a positive reception to OPEC+’s decision, with traders reacting to the reduced risk of oversupply. The increase in Brent and U.S. West Texas Intermediate crude futures reflects the confidence among investors about a balanced supply-demand equation moving forward.