Brent gains despite OPEC+ output hike announcement

The front-month ICE Brent contract has gained by $0.59/bbl on the day from Friday, to trade at $65.58/bbl at 09.00 GMT.

IMAGE: Oil storage tanks. Getty Images

Upward pressure:

Brent crude has climbed above $65/bbl at the start of the week, driven by renewed supply concerns amid escalating geopolitical tensions.

Over the weekend, Ukraine’s military struck the Kirishi oil refinery, also known as Kinef, in Russia’s Leningrad region, for the second time in a month as it continues to target Moscow’s energy infrastructure.  

The facility is owned by Surgutneftegas – one of Russia’s biggest refiners, Bloomberg reported. The city of Kirishi was targeted with seven drones, the report added.

The same refinery came under attack earlier on 14 September. It has a processing capacity of over 20 million mt/year, according to two analysts from ING Bank.

Downward pressure:

Brent’s rally has lost some steam following OPEC+ announcement of a modest output hike for November 2025.

Eight members of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) have agreed to collectively increase their production by another 137,000 b/d in November.

The hike is much smaller than the market participants' expectations of about a 500,000 b/d increase.

OPEC’s announcement was “in contrast to markets expecting a more aggressive reintroduction of supply,” ING Bank’s analysts noted.

By Aparupa Mazumder

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