Oil Prices Spike Nearly 3% as OPEC+ Delays Production Increase

Oil prices jumped close to 3% on Monday following OPEC+'s decision to push back its production increase plans by a month, reflecting tightening global supply concerns. By early afternoon (12:50 pm ET), Brent crude futures had climbed by $2.05 (2.8%) to reach $75.15 per barrel, while U.S. West Texas Intermediate (WTI) crude rose by $2.09 (3%) to $71.56 per barrel.

The rise in oil prices follows OPEC+'s announcement to extend its current output cut of 2.2 million barrels per day (bpd) into December, a cut initially set to lift in October. This adjustment responds to weakened prices and lower demand. Originally, the organization aimed to increase production by 180,000 bpd in December, but ongoing market fluctuations prompted OPEC+ to maintain the current cut for now.

Adding to the uncertainty is the approaching U.S. presidential election, a key event likely to influence financial markets worldwide and potentially impact oil price trends in the coming weeks.