The OPEC+ group, which includes Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, will extend oil output cuts again by 1 month until end-December.
The decision comes ahead of the US presidential election on Tuesday and was made without explanation. No doubt that declining oil prices, weak demand and economic data raised concern in the group about adding more supply.
OPEC+ had already delayed the increase since October. In June, OPEC announced that the 2.2-million b/d voluntary cuts were extended until September, but would then be gradually reduced month by month until they are eliminated by September 2025.
Oil prices are bolstered by the delayed production increase. However, Brent crude remains near its lowest levels this year, below $69/bbl, as seen in September.
