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KEY TAKEAWAYS
- Crude oil futures are rising Monday after the Organization of the Petroleum Exporting Countries and its allies (OPEC+) on Sunday extended their output cuts by one month.
- Saudi Arabia and other members of OPEC+ said they agreed to keep voluntary production cuts of around 2.2 million barrels per day for one month until the end of December.
- It didn’t give a reason for the decision to delay unwinding its voluntary cuts, but oil prices have been weak this year despite escalating tensions in the Middle East, pressured by China’s downbeat economy.
Crude oil futures are rising Monday after the Organization of the Petroleum Exporting Countries and its allies (OPEC+) on Sunday extended their output cuts by one month.
Saudi Arabia and other members of OPEC+, which includes Russia, said they agreed to keep voluntary production cuts of around 2.2 million barrels per day for one month until the end of December. The output cut had already already been extended in September.
Output Cut Extension Comes Amid Weak Oil Prices
It didn’t give a reason for the decision to delay unwinding its voluntary cuts, but oil prices have been weak this year despite escalating tensions in the Middle East, pressured by China’s downbeat economy.
Last month, OPEC reduced its outlook for oil demand for 2024 and 2025, citing data received so far this year.
Brent crude futures are rising 2.5% to $75 per barrel Monday morning, while U.S. benchmark West Texas Intermediate Texas (WTI) futures are gaining 2.8% to $71.40.