Oil Prices Climb as OPEC+ Expected to Maintain Voluntary Output Cuts

Oil prices advanced on Tuesday ahead of the OPEC+ meeting scheduled for September 7 with analysts projecting that the producer group will keep existing voluntary supply cuts in place.

Brent crude oil, against which Nigerian oil is priced, rose 72 cents or 1.06 percent to $68.87 per barrel by 4:07 p.m. in Nigeria, while U.S. West Texas Intermediate (WTI) gained $1.33 or 2.08 percent to trade at $65.34 per barrel.

Market expectations suggest that OPEC+ members, led by Saudi Arabia and Russia, will maintain their voluntary cuts, which have kept prices anchored in the $60 range despite concerns over a potential supply surplus in the last quarter of the year.

Independent analyst Gaurav Sharma said the group may wait for further post-summer demand data before adjusting output policy.

Supply dynamics also added upward pressure as Saudi Aramco and Iraq’s state oil company suspended crude sales to India’s Nayara Energy following sanctions imposed in July by the European Union on the Russian-backed refiner.

Analysts warned that tighter availability in the non-sanctioned crude pool could limit buyers’ options if sanctions intensify. Broader geopolitical risks remain in focus.

The Shanghai Cooperation Organisation (SCO) summit, held from August 31 to September 1, brought together more than 20 non-Western leaders, including China’s Xi Jinping, Russia’s Vladimir Putin, and India’s Narendra Modi.

Market observers cautioned that the summit could prompt new U.S. sanctions, particularly on India, adding further uncertainty to global energy flows.

In the United States, traders also anticipate government data showing another draw in crude inventories following the close of the summer driving season.

UBS analyst Giovanni Staunovo noted that expectations of inventory declines are helping to support prices alongside supply restraint from OPEC+.

With OPEC+ likely to hold its position and supply risks rising, analysts see crude trading within a firm range, though potential surpluses in late 2025 may weigh on sentiment if demand weakens.