Investing.com– Oil prices rose sharply in trading Monday after OPEC+ said it would delay a planned December production increase by at least a month, citing recent price pressure from weak demand.
Oil had risen in recent sessions after reports that the cartel was considering such a move, amid pressure on oil prices from concerns over weak demand and rising production in outside the cartel.
Expiring January oils rose 1.87% to $74.47 a barrel, while oils rose 1.99% to $70.87 a barrel as of 07:45.
OPEC+ delays production increase in December
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, said on Sunday they would delay a planned production increase of 180,000 barrels per day by at least a month.
The cartel had previously outlined plans to begin phasing out its latest production limits of 2.2 million barrels per day starting in December.
But plans to increase production have raised concerns within the group about weakening oil prices, particularly when prices fell to their lowest level in almost three years in September. OPEC+ has cut production by almost 6 million bpd over the past two years to support prices.
China’s weakness has been the main source of concern for oil markets, with the world’s top oil importer facing a prolonged slowdown in economic growth. Oil imports to this country have also declined sharply in recent months.
US elections and Chinese stimulus measures in the crosshairs
Oil prices were also supported by a weaker as the greenback fell ahead of this week’s US presidential election. Recent polls have shown Donald Trump and Kamala Harris in a tight race.
Both candidates have promised to increase domestic oil production, which is already at a record level of more than 13 million bpd.
This week, attention is also focused on China’s National People’s Congress meeting, where policymakers are expected to approve increased fiscal spending to boost economic growth.
According to recent reports, the government could approve up to $1.4 trillion in stimulus measures over the next few years to support growth.
Canada
