Oil prices edged up on Monday after OPEC+ announced it would delay a scheduled increase in oil output by another month, aiming to support prices amid recent declines. Brent crude rose 2.3% to US$74.51 per barrel following the decision, rebounding after last week’s dip to nearly US$70. It's currently trading up 2.65% at US$75.04 a 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 per day from December, but extended its existing production cuts of 2.2 million barrels per day through the end of the year. This move reflects the group’s cautious approach as they monitor concerns about oversupply and weak demand.
Analysts pointed to economic motivations behind the decision. “The oil price is too low to allow production to ramp up anytime soon,” noted XTB analyst Kathleen Brooks, highlighting financial pressures on major producers. Saudi Arabia, facing large infrastructure costs, and Russia, managing the expenses of its conflict with Ukraine, both have strong incentives to keep oil prices stable.
The recent dip in the US dollar also contributed to rising oil prices, making oil more affordable 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 monitoring the supply-demand balance closely.
