Published by Jessica Weisman-Pitts
Posted on November 4, 2024
3 min readLast updated: January 29, 2026
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By Arathy Somasekhar
(Reuters) – Oil prices climbed nearly 2% on Monday on OPEC+’s decision to delay plans to increase output by a month, while the market braced for a critical week in which Americans will elect a new president.
Brent futures were up $1.32 per barrel, or 1.8%, at $74.42 a barrel at 11:02 a.m. ET (16:02 GMT). U.S. West Texas Intermediate (WTI) crude was up $1.34 a barrel, or 1.9%, to $70.83.
U.S. Democratic candidate Kamala Harris and Republican Donald Trump remain virtually tied in opinion polls ahead of Tuesday’s Election Day, and the winner might not be known for days after voting ends.
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.
OPEC+ had been due to increase monthly output by 180,000 bpd from December.
Considering ongoing economic growth concerns, we believe the group wants more clarity on the economic impact of the interest rate cuts in the US and the fiscal and monetary policy easing in China,” said UBS analyst Giovanni Staunovo.
“The group should also have clarity on the next U.S. president and the impact of compensation cuts from countries that produced above their ceiling in the past.”
However, the group is very positive on demand for oil in both the short and long term, Secretary General Haitham Al Ghais said at an energy industry event in Abu Dhabi on Monday.
Speaking at an industry event in Abu Dhabi, the CEO of Italian energy company Eni said that OPEC+ oil supply cuts and recent efforts to unwind them had increased volatility in energy markets and hampered investment in new production.
POLITICAL CRISIS
OPEC oil output rebounded in October from its lowest this year the previous month as Libya resolved a political crisis, a Reuters survey found, although a further Iraqi effort to meet its cuts pledged to the wider OPEC+ alliance limited the gain.
Meanwhile, investors also watched for any escalation in Middle East tensions.
On Thursday, U.S. news website Axios said Israeli intelligence suggested that Iran was preparing to attack Israel from Iraq within days, citing two unidentified Israeli sources.
Middle East tensions once again on the forefront as traders await the Iranian response attack,” said Dennis Kissler, senior vice president of trading at BOK Financial.
That along with the latest declines in crude inventory numbers with gasoline inventories near a 2-year low are keeping buyers present in the crude space,” he added.
U.S. stocks of gasoline fell to 210.9 million barrels in the week to Oct. 25, their lowest since November 2022, data from the U.S. Energy Information Administration showed on Wednesday.
Also buoying prices, the U.S. dollar slipped on Monday as investors exited from positions that have benefited from speculation Republican former President Trump is more likely to win the election on Tuesday.
A stronger greenback dents demand for dollar-denominated oil among buyers using other currencies.
Investor focus this week will be on the U.S. Federal Reserve as economists expect interest rates to be cut by 25 basis points on Thursday, and on China, where the Standing Committee of the National People’s Congress meets and is expected to approve additional stimulus to boost the slowing economy.
(Reporting by Arunima Kumar in Bengaluru, Colleen Howe in Beijing and Siyi Liu in Singapore; Additional reporting by Paul Carsten in London; Editing by Clarence Fernandez, Mark Potter and Ed Osmond)
OPEC+ is a coalition of oil-producing countries that includes the Organization of the Petroleum Exporting Countries (OPEC) and other major oil producers like Russia. They collaborate to manage oil production and influence global oil prices.
Oil futures are contracts to buy or sell a specific amount of oil at a predetermined price on a specified future date. They are used by traders to hedge against price fluctuations in the oil market.
West Texas Intermediate (WTI) is a grade of crude oil used as a benchmark in oil pricing. It is known for its light and sweet characteristics, making it a preferred choice for refining into gasoline.
Crude oil inventories represent the amount of oil stored in facilities. They are an important indicator of supply and demand dynamics in the oil market, influencing prices and trading strategies.
The Federal Reserve, the central bank of the United States, manages monetary policy, regulates banks, and aims to stabilize the economy by controlling inflation and employment levels.
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