Oil prices rose on Monday after OPEC+ announced it would delay a planned increase in oil production by another month, aiming to support prices despite recent declines. Brent crude rose 2.3% to $74.51 a barrel following the decision, rebounding from last week’s decline to nearly $70. It is currently trading up 2.65% at $75.04 per barrel.
The OPEC+ coalition, which includes the Organization of the Petroleum Exporting Countries, Russia and other allies, had initially planned to increase output by 180,000 barrels a day starting in December, but extended existing production cuts by 2.2 million barrels per day until the end of the month. the year. This move reflects the group’s cautious approach as it monitors concerns over oversupply and weak demand.
Analysts highlighted the economic reasons behind the decision. “Oil prices are too low for production to ramp up anytime soon,” noted XTB analyst Kathleen Brooks, highlighting financial pressures on major producers. Saudi Arabia, which faces huge infrastructure costs, and Russia, which must manage the costs of the conflict with Ukraine, both have strong incentives to keep oil prices stable.
The recent decline in the US dollar has also contributed to higher oil prices, making it cheaper for buyers using other currencies. As the US presidential election and China’s economic policy meeting unfold this week, analysts expect the energy market to remain volatile, with OPEC+ likely to continue to closely monitor the balance of supply and demand.