Brent futures rose by $1.18 per barrel, or 1.61 percent


Beijing/Singapore: Oil prices extended gains on Monday, rising more than $1 on a decision by OPEC+ to delay by a month plans to increase output, while the market braced for a week that spans a US presidential election and a key meeting in China.
Brent futures rose by $1.18 per barrel, or 1.61 percent, to stand at $74.28 a barrel by 0402 GMT. US West Texas Intermediate (WTI) crude rose by $1.21 a barrel, or 1.74 percent, to stand at $70.70.
On Sunday, OPEC+, which includes the Organization of the Petroleum Exporting Countries plus Russia and other allies, said it would extend its output cut of 2.2 million barrels per day (bpd) for another month in December, with an increase already delayed from October because of falling prices and weak demand.
The grouping had been due to increase output by 180,000 bpd from December.
“While the delay until January does not change fundamentals significantly, it does potentially leave the market having to rethink the strategy of OPEC+,” ING analysts said in a note.
The delay bucked the expectations of some in the market for OPEC+ to deliver the planned hike in output, they added.
“This delayed supply increase means that maybe the groups are more willing to support prices than many believe,” they said.
The group is set to gradually unwind the 2.2-million-bpd cut over the coming months, while another 3.66 million bpd of production cuts will stay until the end of 2025.
Brent and WTI posted weekly declines last week of about four percent and three percent, respectively, as record US output weighed on prices. But both contracts edged up on Friday on reports that Iran could launch a retaliatory strike on Israel within days.
On Thursday, US news website Axios said Israeli intelligence suggested that Iran was preparing to attack Israel from Iraq within days, citing two unidentified Israeli sources.
It is questionable whether the price uptrend will be sustained as previous initial positive reaction to the delayed output hike and geopolitical tension have eventually fizzled off, said Yeap Jun Rong, a market strategist at IG.
For now, oil prices may stay in a broad consolidation range, with any upside likely to find some resistance at the level of $78.50, he added.
Markets await Tuesday's US presidential election, with polls showing Democratic Vice President Kamala Harris and Republican former President Donald Trump neck-and-neck.
And on Thursday, economists expect the US Federal Reserve to cut interest rates by 25 basis points.
In China, the Standing Committee of the National People's Congress meets from Monday to Friday and is expected to approve additional stimulus to boost the slowing economy, though analysts say the bulk may go to help cut local government debt.
SOURCE: REUTERS
WWE icon Goldberg bids farewell after 27-year wrestling career
- 5 hours ago

Kashmir Martyrs’ Day: A historic reminder of struggle and sacrifice
- 5 hours ago

Wildlife force deployed as no-bird zones enforced near Lahore airport
- 4 hours ago

Yanks' Rodon replaces Fried on AL All-Star team
- 13 hours ago

High risk near rivers as Tarbela spillways open today
- 3 hours ago
Iran confirms assassination attempt on President Pezeshkian amid Israeli airstrikes
- 4 hours ago
Kim Jong-un offers full support to Russia in Ukraine war
- an hour ago

Sindh police give 10-day deadline to personnel to quit gutka, mawa use
- 2 hours ago
WhatsApp introduces new feature to show how many people are typing in group chats
- 2 hours ago
PTI launches 90-day ‘do or die’ movement across Pakistan
- 5 hours ago

Emergency vaccination reduced deaths by nearly 60% during epidemics, study finds
- 2 hours ago
Rawalpindi to Multan bus meets accident; 5 in critical condition
- 4 hours ago