Oil jumps nearly 3% after OPEC+ delays output hike, US election in focus

Nov 4 (Reuters) – Oil prices climbed nearly 3% on Monday on OPEC+’s decision for a month’s delay in plans to increase output, while investors also focused on the U.S. presidential election. Brent futures were up $1.98, or 2.7%, at $75.08 a barrel. U.S. West Texas Intermediate (WTI) crude rose $1.98, or 2.85%, to $71.47. Last week, Brent declined about 4%, while WTI fell around 3%. On Sunday, OPEC+ 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+, the Organization of the Petroleum Exporting Countries plus Russia and other allies, had been due to increase monthly output by 180,000 bpd from December. The extension through the entire fourth quarter of 2024 “casts doubt on the group’s commitment (or wherewithal) to return supply at all” in 2025, said Walt Chancellor, an energy strategist at Macquarie, adding that the announcement may allay some fears of a renewed OPEC+ “price war.” OPEC remains very positive on demand for oil in both the short and long term, Secretary General Haitham Al Ghais said on Monday. French oil major TotalEnergies forecast global oil demand will peak after 2030 in its two most likely energy transition scenarios in its annual energy outlook report. Meanwhile, the CEO of Italian energy company Eni (ENI.MI), opens new tab said that OPEC+ oil supply cuts and recent efforts to unwind them had increased volatility in energy markets and hampered investment in new production. OPEC oil output rebounded in October as Libya resolved a political crisis, a Reuters survey found. In the previous month output was at its lowest this year. A further Iraqi effort to meet its cuts pledged to the wider OPEC+ alliance limited the gain. Iran has approved a plan to increase oil production by 250,000 barrels per day, the oil ministry’s news website Shana reported on Monday. Libya’s oil production is nearing 1.5 million bpd, the country’s National Oil Corporation (NOC) said.