Oil Prices Rise Sharply in Asia

Oil prices experienced a significant increase during Asian trade on Monday after OPEC+ decided to delay a planned output hike in December by at least a month due to recent price pressure from weak demand.

Recent Trends

In the past sessions, oil prices had already seen a rise following reports that the cartel was contemplating this decision, aimed at addressing concerns surrounding weak demand and heightened production outside the cartel.

By 20:08 ET (01:18 GMT), Brent oil futures for January increased by 1.5% to $74.23 a barrel, while West Texas Intermediate crude rose by 1.6% to $70.17 a barrel.

OPEC+ Delays December Production Hike

On Sunday, the Organization of Petroleum Exporting Countries and its allies, including Russia, announced they would postpone a planned output increase of 180,000 barrels per day for at least a month. The initial plan had been to gradually reduce the previous 2.2 million bpd production cuts starting in December.

This delay comes amid concerns over falling oil prices, which reached a near three-year low in September. Over the past two years, OPEC+ has slashed production by nearly 6 million bpd to help bolster prices.

Weakness in China remains a primary worry for oil markets, as the largest oil importer faces a prolonged economic downturn, leading to sharply declining oil imports in recent months.

Focus on US Elections and China's Stimulus

Oil prices were further supported by a weaker dollar, which fell ahead of the US presidential election this week. Recent polls indicate a tight race between Donald Trump and Kamala Harris, both of whom have vowed to boost domestic oil production, which is already at a record high of over 13 million bpd.

This week also highlights a meeting of China's National People's Congress, where policymakers are expected to approve increased fiscal spending to stimulate economic growth. Reports suggest that the government may endorse up to $1.4 trillion in stimulus over the upcoming years to enhance growth.