Oil prices experienced a notable increase on Wednesday, as investors shifted their focus away from concerns about oversupply and the decision by OPEC+ to limit production increases for the upcoming month. Brent crude futures rose by 48 cents, or 0.7%, to $65.93 per barrel, while US West Texas Intermediate crude climbed 51 cents, or 0.8%, to $62.24 by 0500 AM WAT.

The recent increase in oil prices can be attributed to OPEC+’s decision to opt for a modest rise in production, with an increase of 137,000 barrels per day, which is the lowest among the options discussed by the group. This move has led some traders to maintain long positions, betting on a potential rise in prices due to continued efforts to restrict Russian crude flows.

In the previous session, the benchmarks had settled relatively flat, as investors weighed the signs of a supply glut against the smaller-than-expected increase in November output from OPEC+ and its affiliates. The current price surge suggests that investors are now more focused on the potential impact of curbing Russian crude flows on the global oil market.

Investors are also eagerly awaiting the release of US inventory data from the Energy Information Administration later on Wednesday, which is expected to provide further insight into the current state of the oil market. The price movement is being closely watched, as it may have significant implications for the global energy sector.

In related news, gold prices have also seen a significant surge, topping $4,000 for the first time in 2025. The oil price increase, however, is primarily driven by the OPEC+ decision and the anticipated impact of restricted Russian crude flows. As the global energy landscape continues to evolve, investors will be closely monitoring the situation, awaiting the next developments in the oil market. The release of the US inventory data and the ongoing efforts to curb Russian crude flows will likely be key factors influencing oil prices in the coming days.