Oil prices rose nearly 3% on Monday as OPEC+ announced it would delay a planned increase in output by a month, extending cuts of 2.2 million barrels per day through December due to weak demand and falling prices. Brent crude futures gained $1.98, or 2.7%, reaching $75.08 a barrel, while WTI crude rose by 2.85% to $71.47. The prolonged cuts have raised questions about OPEC+’s willingness to boost production at all in 2025, with Macquarie energy strategist Walt Chancellor noting it may ease fears of a “price war.”
Investors are also focused on the upcoming U.S. presidential election, where candidates Kamala Harris and Donald Trump are neck-and-neck in polls. Market watchers remain alert for possible tensions in the Middle East, especially after Israeli intelligence suggested Iran may be preparing to attack from Iraq. Additionally, attention is on potential impacts from a Caribbean storm threatening Gulf of Mexico oil production, the Fed’s expected interest rate cut on Thursday, and China’s anticipated economic stimulus measures to address slowing growth.