Nov 4 (Reuters) – Oil prices rose nearly 3% on Monday after OPEC+ decided to delay plans to raise output by a month, while investors also focused on the U.S. presidential election.
Brent futures rose $1.98, or 2.7%, to $75.08 a barrel. U.S. West Texas Intermediate (WTI) crude rose $1.98, or 2.85%, to $71.47. Brent fell nearly 4% last week, while WTI fell nearly 3%.
On Sunday, OPEC+ said it would extend its production cut of 2.2 million barrels per day (bpd) for another month in December, having already delayed an increase from October because of falling prices and weak demand.
OPEC+, the Organization of Petroleum Exporting Countries, Russia and other allies were to increase monthly output by 180,000 bpd from December.
Macquarie energy strategist Walt Chancellor said the extension to the full fourth quarter of 2024 “casts doubts over the group’s commitment (or means) to bring supply back into gear in 2025”, adding that the announcement could allay some fears of a renewed OPEC+ “price war”.
OPEC Secretary General Haitham Al Ghais said on Monday that OPEC remains positive on oil demand in both the short and long term.
French oil major TotalEnergies forecasts in its annual Energy Outlook report that global oil demand will peak after 2030 in its two most likely energy transition scenarios.
Meanwhile, the CEO of Italian energy company Eni (ENI.MI) said OPEC+ oil supply cuts and recent efforts to reduce them had increased volatility in energy markets and hampered investment in new production.
Iran has approved a plan to increase oil output by 250,000 barrels per day, the oil ministry’s news website Shana reported on Monday. Libya’s National Oil Corporation (NOC) said its oil output was approaching 1.5 million barrels per day.
