Oil prices surged nearly 3% following OPEC+ production hike delay
OPEC+ stated over the weekend that its 2.2 million bpd production cut, initially postponed from October to bolster prices and address weakening demand, will now extend through December.
Oil prices jumped nearly 3% on 03 November 2024, after OPEC+ announced yet another postponement in planned output increases, amid escalating tensions in the Middle East and looming economic uncertainties.
Brent futures rose by $1.98 or 2.7% to close at $75.08/barrel.
WTI increased by $1.98 or 2.85% to settle at $71.47/barrel.
OPEC+ stated over the weekend that its 2.2 million bpd production cut, initially postponed from October to bolster prices and address weakening demand, will now extend through December. Industry insiders view this latest delay as an effort to stabilize an increasingly volatile oil market, although critics question the long-term effectiveness of such strategies in the face of persistent demand fluctuations.
Adding to the uncertainty, the upcoming US election is expected to fuel market volatility, potentially impacting oil prices further. Meanwhile, China’s National People's Congress (NPC) meeting, a key event for setting economic priorities in the region, is underway, with any policy adjustments likely to influence Chinese oil consumption.
Written by: Muhammad Hafiz