OPEC+ Delay Boosts Oil Prices Over $1

4 Nov 2024 , 10:14 AM

Following OPEC+’s announcement on Sunday that it will postpone a planned December output raise by one month, oil prices increased by more than $1 in early trade on Monday.

At $74.24, Brent futures increased by $1.14, or 1.56%, a barrel. At $70.63, U.S. West Texas Intermediate (WTI) crude also increased by $1.14, or 1.64%, per barrel.

Last week, as record U.S. supply weighed on prices, Brent and WTI reported weekly drops of almost 4% and 3%, respectively. However, on Friday, both contracts gained ground on rumours that Iran would strike Israel in retaliation in a matter of days.

In December, OPEC+, which consists of Russia and other allies in addition to the Organisation of the Petroleum Exporting Countries, was scheduled to boost production by 180,000 barrels per day (bpd).

A further 3.66 million bpd of output restrictions will remain in place until the end of 2025, while the company plans to progressively unwind the 2.2 million bpd cut over the upcoming months.

According to two unnamed Israeli officials cited by U.S. news website Axios on Thursday, Israeli intelligence indicated that Iran was planning to launch an attack on Israel from Iraq in the coming days.

The U.S. presidential election is scheduled for Tuesday, and according to surveys, Democratic Vice President Kamala Harris and Republican former President Donald Trump are in close competition.

For feedback and suggestions, write to us at [e-mail]