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Oil Prices Rise on Supply Worries Even as OPEC+ Completes Return of 2.2-Million BPD of Production Cuts
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Oil Prices Rise on Supply Worries Even as OPEC+ Completes Return of 2.2-Million BPD of Production Cuts
Sep 2, 2025 6:04 AM

08:50 AM EDT, 09/02/2025 (MT Newswires) -- Oil prices rose early on Tuesday on supply concerns even as OPEC+ a day earlier completed its return of 2.2-million barrels per day of production cuts with a final 548,000 bpd tranche of additional supply ahead of the group's coming meeting to decide on future output.

West Texas Intermediate crude oil for October delivery was last seen up US$1.80 to US$65.81 per barrel, while November Brent oil was up $1.12 to US$69.27.

The rise comes as Ukraine continue to attack Russian oil infrastructure, raising concerns for supply, even as the United States continues to pressure India to curtail imports from Russia with 50% secondary tariffs. A Friday decision from a U.S. Federal Appeals Court that ruled Donald Trump's tariff policies are illegal, a ruling that will take effect on Oct.14 unless the Supreme Court decides to overturn the decision, raising hopes for stronger economic growth.

The Labor Day holiday marked the end of the U.S. summer driving season and the start of the lower-demand autumn shoulder season for the commodity. Following its September supply boost, OPEC+ will meet on the weekend to decide on future production rates, though the group is mostly expected to stand pat in order to assess demand.

"Crude trades higher as US pressure on Russia to stop the war continues, focusing on curbing supply flows to India. Prices are further supported by short covering from heavily extended speculative positions in WTI and expectations that OPEC+, meeting on 7 September, will keep output unchanged," Saxo Bank noted.

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