OPEC+ includes Russia, Iraq, the United Arab Emirates and Kuwait. Several of these countries want to produce more oil but have struggled to find the right time to begin loosening the taps.Saudi Arabia and seven other oil-producing countries said Sunday that they would postpone plans to gradually increase oil output until the end of December, according to a news release posted on the OPEC website.
No reason was given for the delay, but it was expected by some analysts. Sunday's move appears intended to avoid unsettling markets, particularly before the tight presidential election in the United States on Tuesday, which could create volatility.
On Monday, prices of Brent crude, the international benchmark, rose 2.7% to $75 a barrel. Prices for U.S. crude also rose about 2% to above $71 a barrel.
OPEC+ had first announced in June that it would gradually increase production by an estimated 2.2 million barrels a day, or around 2% of global supplies, in October. That had been a major source of concern for the markets. Then, in September, the group announced a delay until at least December.
The group may also have decided not to increase production at this time because oil prices have recently drifted downward, as traders have judged that immediate geopolitical risks related to the Israel-Hamas war have eased.
In October, amid fears that conflict between Israel and Iran could lead to a disruption in oil supplies, prices for Brent crude, the international benchmark, briefly topped $80 a barrel. But they eased to about $73 a barrel Friday, as the focus shifted back to issues like weak demand from China. Many analysts say that even $80 a barrel is a relatively low price considering the tensions in an important oil-producing region.
"With geopolitical concerns temporarily set aside, attention is once again shifting back to market fundamentals," analysts at J.P. Morgan wrote in a recent note.
OPEC+ includes Russia, Iraq, the United Arab Emirates and Kuwait. Several of these countries want to produce more oil but have struggled to find the right time to begin loosening the taps.
