OPEC+ Members Extend Voluntary Production Cuts, Boosting Oil Prices

Foreks - The announcement that eight OPEC+ members have voluntarily extended their daily production cut of 2.2 million barrels for another month has raised oil prices. A report by an American news site, Axios, which cites two unnamed Israeli sources, claiming that Israeli intelligence suggests Iran is preparing to attack Israel from Iraq within a few days, has also supported the price increase.

Brent crude futures on ICE traded at $74.18, up $1.08 or 1.48%, while U.S. West Texas Intermediate crude rose by $1.10 or 1.58% to $70.60 per barrel.

ING analysts stated, "While the fundamentals for the delay do not significantly change until January, it potentially requires the market to rethink OPEC+'s strategy. The delay has reversed expectations in the market regarding OPEC+'s planned production increases. This postponed supply increase may indicate that the group is perhaps more willing to support prices than many believe."

As OPEC+ prepares to gradually relax the 2.2 million barrel cut in the coming months, a 3.66 million barrel production cut will remain in effect until the end of 2025.