Oil prices steady despite OPEC+ plans to pause output increases

Oil prices held steady on Monday as the market balanced the latest OPEC+ supply increase with the group's plans to pause output increases in the first quarter of 2026 along with fears of an oil supply glut and weak factory data in Asia.

Brent crude futures fell 24 cents, or 0.4%, to $64.53 a barrel at 10:37 a.m. EST (1537 GMT). U.S. West Texas Intermediate (WTI) crude fell 31 cents, or 0.5%, to $60.67.

OPEC+, the Organization of the Petroleum Exporting Countries (OPEC) and allied producers, agreed on Sunday to raise output by a small 137,000 barrels per day (bpd) in December.

OPEC+ also agreed to pause increases in the first quarter of next year. That does not affect the projected surplus, analysts at European financial services group SEB said in a note.

"But it shows that OPEC+ hasn't forgotten about the price. It still cares about price. It tells us that 2026 won't be a bloodbath or graveyard for oil," they added.

On Monday, Morgan Stanley raised its Brent crude forecast for the first half of 2026 to $60 a barrel from $57.5, citing the decision by OPEC+ to pause quota hikes in the first quarter of next year and recent on Russian oil assets.