Mumbai, 04 Noc (Commoditiescontrol): Crude oil prices surged over $1 per barrel on Monday as OPEC+ announced a delay to its planned December output increase, opting instead to extend production cuts due to sluggish demand and rising supply from non-member nations.
Brent crude rose by $1.18, or 1.61%, to $74.28 a barrel, while U.S. West Texas Intermediate (WTI) crude climbed $1.20, or 1.73%, to $70.69 a barrel.
OPEC+, which includes the Organization of the Petroleum Exporting Countries along with Russia and other allies, had originally intended to increase output by 180,000 barrels per day (bpd) in December. Instead, the group will extend its current 2.2 million bpd cut through December, postponing the hike for a second time after initially delaying it from October.
Analysts note that the move signals OPEC+'s willingness to support prices, which have come under pressure due to record U.S. output and weakened global demand. The delay challenges some market expectations that OPEC+ would proceed with its production increase. The group, however, appears committed to gradually easing the 2.2 million bpd cut over the coming months, while an additional 3.66 million bpd reduction remains in place until the end of 2025.
Last week, both Brent and WTI futures posted weekly losses, with Brent down about 4% and WTI down roughly 3%, largely due to increased U.S. production. However, prices saw a lift on Friday amid geopolitical concerns, as reports emerged suggesting potential Iranian strikes against Israel.
In the days ahead, market focus will shift to the U.S. presidential election on Tuesday, where polls indicate a close race between Vice President Kamala Harris and former President Donald Trump. Additionally, the U.S. Federal Reserve’s anticipated interest rate cut on Thursday and China’s legislative session, expected to approve further economic stimulus, are events that could influence market dynamics.
(By Commoditiescontrol Bureau: 09820130172)
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