By Ahmad Ghaddar
LONDON (Reuters) -Oil prices climbed on Wednesday, helped by a smaller than expected output hike from producer group OPEC+ next month, though concerns about oversupply capped further gains.
Brent crude futures rose 53 cents, or 0.8%, to $65.98 a barrel by 1348 GMT. U.S. West Texas Intermediate crude climbed 54 cents, or nearly 0.9%, to $62.27.
The benchmarks settled broadly flat in the previous session as investors weighed signs of a supply glut against a smaller-than-expected increase to November output from the Organization of the Petroleum Exporting Countries and allies led by Russia, or OPEC+.
“The bare minimum that OPEC+ decided to get away with on Sunday still provided some support,” PVM oil analyst Tamas Varga said in a note on Wednesday.
OPEC+ agreed to raise its output targets for November by 137,000 barrels per day on growing concerns about a looming glut in the oil market, sources from the group told Reuters.
Goldman Sachs said it saw an inventory build of 1.5 million bpd in the last quarter despite strong seasonal demand. The bank expects a surplus of 2 million bpd over the period from Q4 2025 to Q4 2026.
But it sees an upside risk for prices from declines to Russian production.
Investors are also awaiting U.S. inventory data from the Energy Information Administration later on Wednesday.
On Tuesday, sources citing American Petroleum Institute figures said U.S. crude stocks rose by 2.78 million barrels in the week ended October 3.
Conversely, gasoline and distillate inventories fell, the sources said, citing the API data.
Meanwhile, the Interfax news agency reported Deputy Prime Minister Alexander Novak saying that Russia has gradually been raising its crude production and was close last month to meeting the output quota agreed by OPEC+.
Its energy sector has been under serious strain in the past two months due to a wave of Ukrainian drone attacks on its oil and gas infrastructure, mainly targeting oil refineries.
(Additional reporting by Jeslyn Lerh in Singapore Editing by William Maclean and Ros Russell)
