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Oil gains as OPEC+ supply increase falls short | The Express Tribune
Oil prices climbed more than $1 on Monday, regaining some of last week’s losses, after OPEC+’s output hike was seen as modest and due to concerns over the possibility of more sanctions on Russian crude.
OPEC+ flagged plans to further increase production from October, but the amount was less than some analysts had anticipated. Reuters reported earlier this month that members were considering another hike.
“The market had run ahead of itself regarding this OPEC+ increase,” said Ole Hansen, head of commodity strategy at Saxo Bank. “Today we’re seeing a classic sell the rumour, buy the fact reaction.”
Brent crude climbed $1.28, or 1.95%, to $66.78 a barrel by 1031 GMT, while US West Texas Intermediate crude rose $1.20, or 1.94%, to $63.07 a barrel.
Both benchmarks fell more than 2% on Friday as a weak US jobs report dimmed the outlook for energy demand. They lost more than 3% last week.
OPEC+, which includes the Organization of the Petroleum Exporting Countries plus Russia and other allies, agreed on Sunday to further raise oil production from October.
OPEC+ has been increasing production since April after years of cuts aimed at supporting the oil market. The latest decision comes despite a likely looming oil glut in the Northern Hemisphere winter months.
The eight members of OPEC+ will lift production from October by 137,000 barrels per day. That, however, is much lower than increases of about 555,000 bpd for September and August and 411,000 bpd in July and June.
The impact of the latest increase is expected to be relatively low because some members have been overproducing. So the higher output level would likely include barrels that are already in the market, analysts said.
“Expectations of tighter supply from potential new U.S. sanctions on Russia are also lending support,” said Toshitaka Tazawa, an analyst at Fujitomi Securities.
US President Donald Trump said on Sunday he is ready to move to a second phase of sanctioning Russia, the closest he has come to suggesting he is on the verge of ramping up sanctions against Moscow or its oil buyers over the war in Ukraine
New sanctions on buyers of Russian oil could disrupt crude flows, energy trader Gunvor’s global head of research and analysis, Frederic Lasserre, said on Monday.
Russia launched its largest air attack of the Ukraine war over the weekend, setting the main government building on fire in central Kyiv and killing at least four people, Ukrainian officials said.
Trump said on Sunday that individual European leaders would visit the United States on Monday and Tuesday to discuss how to resolve the conflict.
In a note over the weekend, Goldman Sachs said it expects a slightly larger oil surplus in 2026 as supply upgrades in the Americas outweigh a downgrade to Russia supply and stronger global demand. It left its Brent/WTI price forecast unchanged for 2025 and projected the 2026 average at $56/$52 a barrel.
Airbus CEO Guillaume Faury told CNBC on Tuesday that the plane maker remains on pace to deliver about 820 commercial aircraft in 2025, even as engine production delays continue to limit its capabilities.
In an interview with CNBC’s Phil LeBeau, Faury said the European company is “on track” with aircraft production and has been making “gliders,” or finished planes without engines, as it awaits engine deliveries from manufacturers CFM International and Pratt & Whitney.
“All our attention will be on engine deliveries from both CFM and Pratt & Whitney, but they’re telling us that they will be able to deliver what we need. So we remain positive for the back end of the year,” Faury said.
Airbus delivered 61 planes in August, bringing its total for the year to 434. U.S. rival Boeing announced Tuesday it delivered 57 planes in August and 385 so far in 2025, continuing to trail Airbus in that metric. Boeing hasn’t issued delivery guidance for the year.
Aircraft manufacturers have faced engine production delays for years. RTX, which owns Pratt & Whitney, in 2023 said engine manufacturing defects would affect hundreds of engines through 2027.
Airbus CEO Guillaume Faury speaks during the Airbus summit 2025 at the Airbus headquarters in Toulouse, southern France, on March 24, 2025.
Ed Jones | Afp | Getty Images
Faury attributed the engine delivery delays to quality issues and worker strikes.
“But I think basically they have the capabilities to produce the volumes that are expected, so I hope they will be back on track and then delivering on their commitments,” he said.
Airbus has maintained its deliveries target throughout the year, even as tariffs have threatened to roil its business. The current U.S. trade agreement with the European Union, however, spares the aircraft industry from President Donald Trump’s “reciprocal tariffs.”
Faury on Tuesday said he believes the tariff relief is “the right thing to do.” But what continues to worry him most about the global economy is uncertainty, he said.
“We are long-term industries. We need visibility. We need predictability. And all this change is not predictable, and having to adapt all the time is slowing us down,” Faury said.
The US economy added 911,000 fewer jobs than initial estimates had suggested in the year through March, according to preliminary data from the Labor Department released on Tuesday.
The routine annual report – a revision to payrolls data – showed that the jobs market had been growing at a slower pace than previously thought at the end of the Biden administration and in the first months of the Trump administration.
Economists had anticipated a large downward revision, but the weaker-then-expected figure bolstered concerns about the health of the world’s largest economy.
The Federal Reserve is closely watching for signs of softness in the jobs market ahead of its meeting next week.
The US central bank is expected to lower its benchmark interest rate after holding rates steady so far this year, as it weighs signs of a slowdown in the jobs market against fears that US President Donald Trump’s tariffs might reignite inflation.
Last week, the Labor Department reported that employers added just 22,000 jobs in August, fewer than expected, while the unemployment rate ticked up from 4.2% to 4.3%. Tuesday’s data added to this picture of a slowing jobs market, reinforcing expectations that the US central bank will cut interest rates next week.
The job growth revisions come at a politically fraught time for the Bureau of Labor Statistics. Just weeks ago, President Trump responded to the signs of a slowdown by firing the head of the agency, accusing Erika McEntarfer, without evidence, of rigging the numbers to make him look bad.
Analysts say the more recent troubles in the job market are partly due to the president’s sweeping changes to tariff and immigration policy, which economists have consistently warned would hurt the economy.
But the Labor Department revisions, which encompass part of the Biden administration, could serve as a boost for President Trump, who has pushed back against claims that his policies are fuelling weakness in the jobs market.
“President Trump was right: Biden’s economy was a disaster and the BLS is broken,” White House press secretary Karoline Leavitt said in a statement on Tuesday.
She reiterated longstanding calls from the Trump administration for Jerome Powell, the chair of the Fed, to “cut the rates now”.
Wall Street largely looked past the jobs growth revisions, with the S&P 500 index holding steady in early trading on Tuesday. But investors remain on edge.
Fresh inflation data is set to be released on Thursday. That could bring fears of stagflation – a situation in which economic growth slows while consumer prices rise – to the forefront, said Chris Zaccarelli, chief investment officer at Northlight Asset Management.
Zaccarelli added that while a deteriorating jobs market “should make it easier for the Fed to cut rates this fall, it could also throw some cold water on the recent rally.”
The Labor Department’s revisions were broad-based, with particularly large adjustments in services sectors including leisure and hospitality.
“With services being the last bastion of employment growth, this does not bode well for the overall health of the labour market,” Bradley Saunders, North America economist at Capital Economics, said in a research note.
Faarea Masud & Connie BowkerBBC News
MitchumA well-known deodorant brand has apologised and recalled some of its roll-on products after customers were reportedly left with itchy, burning armpits.
Consumers of Mitchum’s 48-hour roll-on anti-perspirant and deodorant complained on social media how they experienced “agonising weeping spots”, redness and irritation after using the roll-ons.
Posting on TikTok, one customer claimed they wanted to “rip my armpits out”, while another said her underarms felt like they were “on fire”.
The company said it was “truly sorry” and explained how a change in the manufacturing process had led to the 100ml batches sold in the UK, Ireland and South Africa being affected and recalled.
Hundreds have taken to sharing videos of their experience on social media, including a customer who described how she was left in agony because of “weeping spots” under her arm.
“I won’t be using any Mitchum products again because I’m not risking this happening again,” she said.
One woman said she was unable to sleep after applying the roll-on to her skin because the deodorant left her with “second degree chemical burns on my armpits”.
Another described her underarm skin as developing a pink rash which had “scabbed over”.
A Mitchum spokesperson said the brand was “truly sorry some of our customers have experienced temporary irritation.”
In a statement, the company said: “We want to reassure there has been no change to the formula of our products, but we have identified a change in the manufacturing process affecting one of our raw materials.
“This has impacted how the roll-on interacts with the skin of some users.”
It said the issue had since been “resolved” and it was working to “remove the small amount of product” left in shops.
“In addition, we have reverted to the original manufacturing process to ensure no other batches are affected”, the spokesperson said.
Mitchum advised all those affected to contact its customer services team so it could “make this right”.
The firm has issued a list of all the affected 100ml roll-on products. These are:
- Powder Fresh
- Shower Fresh
- Unscented
- Pure Fresh
- Flower Fresh
- Ice Fresh
- Clean Control
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