Oil rises after OPEC+ hikes output less than expected

Oil prices rose by about $1 on Monday after OPEC+'s planned production increase for November was more modest than expected, tempering some concerns about supply additions, though a soft outlook for demand is likely to cap near-term gains.

Brent crude futures climbed $1.07, or 1.66%, to $65.60 a barrel by 12:52 p.m. EDT (1652 GMT), while U.S. West Texas Intermediate crude was at $61.84, up 96 cents, or 1.58%.

"The market feel that the actual amount of oil that is going to hit the market is far less than what they announced, given that some of the OPEC+ members are already producing at capacity," said Andrew Lipow, president of Lipow Oil Associates.

On Sunday, the Organization of the Petroleum Exporting Countries, plus Russia and some smaller producers, said it would raise production from November by 137,000 barrels per day, matching October's figure, amid persistent concern over a looming supply glut.

In the run-up to the meeting, sources said although Russia was advocating for an increase of 137,000 bpd to avoid pressuring prices, Saudi Arabia would have preferred double, triple or even four times that to quickly regain market share.