OPEC+ countries announced they will continue to cut oil production by 2.2 million barrels per day for another month in December.
Oil prices rose sharply in Monday’s trade after OPEC+ decided to delay production increases for a month. Reuters wrote this on November 4.
Thus, at 11:30 Kyiv time, the price of January futures for Brent on the London ICE exchange rose to $74.97 per barrel, which is $1.87 (2.56%) higher than the closing of the previous trade.
WTI oil futures for December in electronic trading on the New York Mercantile Exchange (NYMEX) rose $1.93 (2.78%) to $74.97 a barrel.
On Sunday, OPEC+ announced it would continue cutting production by 2.2 million barrels per day for another month in December. They previously planned to increase production by 180 thousand barrels per day from December, but this was postponed due to low prices and weak demand.
ING analysts noted that while a one-month delay would not make much of a difference, it could signal OPEC+’s willingness to support prices.
Oil prices fell last week on high US production, but rose slightly on Friday on reports of a possible Iranian attack on Israel. Market analysts doubt whether the rally will continue as early gains on such news have quickly faded.
Prices are expected to remain at current levels, although they may encounter resistance at $78.50. This week, markets also await the US presidential election and the Federal Reserve meeting, where interest rates may be cut.
We remind you that a week ago there was a price drop in the oil market. This happened as the geopolitical risk premium that shaped oil prices fell in anticipation of an Israeli strike on Iran.
Source: korrespondent
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