Oil companies, including Shell PLC (LSE:SHEL, NYSE:SHEL) and BP PLC (LSE:BP.), were on the rebound on Monday as crude prices bounced back from one-month lows.
This followed a meeting by the Opec+ at the weekend, when the producers cartel led by Saudi Arabia, and including Russia, said it would add to its scheduled production increase next month.
However, this extra supply had been anticipated by the market, leading to the price of Brent falling 3.8% last week and US WTI tumbling 4%.
Oil prices were also lifted as markets braced for new sanctions on Russia, following the largest ever aerial attack on Ukraine.
US President Donald Trump recently warned of new potential sanctions against Russia if the war persists.
On Monday morning, Brent crude was up 1.7% to $66.6 a barrel and WTI up 1.85% to just over $63.
Shares in Shell rose 1.3% to 2,660.79p while BP was up 1.4% to 421.4p, with mid-caps Harbour Energy PLC (LSE:HBR), Ithaca Energy PLC (LSE:ITH), Energean PLC (LSE:ENOG) and Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) mostly up over 1% too.
In its announcement on Sunday, Opec+ said: "In view of a steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories, the eight participating countries decided to implement a production adjustment of 137 thousand barrels per day from the 1.65 million barrels per day additional voluntary adjustments announced in April 2023."
The adjustment will be implemented in October.
"The 1.65 million barrels per day may be returned in part or in full, subject to evolving market conditions and in a gradual manner.
"The countries will continue to closely monitor and assess market conditions, and in their continuous efforts to support market stability, they reaffirmed the importance of adopting a cautious approach and retaining full flexibility to pause or reverse the additional voluntary production adjustments, including the previously implemented voluntary adjustments of the 2.2 million barrels per day announced in November 2023."