On Monday, oil prices rose by more than $1 after OPEC+ decided to postpone its production increase for a month. This happened as the market prepared for events such as the US presidential election and an important meeting in China.
Writes UNN with reference to Reuters.
Brent rose in price by $1.39 to $74.49 per barrel, while US WTI rose by $1.41 to $70.90 per barrel. On Sunday, OPEC+ announced that it would extend its production cuts by 2.2 million barrels per day for another month in December. Previously, they planned to increase production by 180 thousand barrels per day from December, but postponed it due to low prices and weak demand.
ING analysts noted that although the one-month postponement does not change the situation much, it may indicate OPEC+'s willingness to support prices.
Last week, Brent and WTI oil prices declined due to high US production, but on Friday they rose slightly due to reports of a possible Iranian strike on Israel. Some analysts doubt whether this growth will continue, as previous rises due to similar news quickly faded.
It is expected that prices will remain at the current level, although they may encounter resistance around $78.50. This week, markets are also looking ahead to the US presidential election and the Federal Reserve meeting, where interest rates may be cut.
Recall
Last week, oil prices rose by more than $1 per barrel after reports that Iran was preparing a retaliatory strike against Israel.