Brent futures gained $1.18 per barrel, or 1.61%, to sit at $74.28 a barrel and U.S. West Texas Intermediate (WTI) crude added $1.21 a barrel, or 1.74%, to sit at $70.70
Oil prices extended gains on Monday, rising more than $1 on a decision by OPEC+ to delay by a month plans to raise output, while the market braced for a key meeting in China and U.S. presidential election.
Brent futures gained $1.18 per barrel, or 1.61%, to sit at $74.28 a barrel by 0402 GMT. U.S. West Texas Intermediate (WTI) crude added $1.21 a barrel, or 1.74%, to sit at $70.70.
On Sunday, OPEC+, which includes the Organization of the Petroleum Exporting Countries plus Russia and other allies, said it would extend its output cut of 2.2 million barrels per day for another month in December, with an increase already delayed from October because of declining prices and weak demand.
The grouping had been due to raise output by 180,000 barrels per day from December.
While the delay until January does not change fundamentals significantly, it does potentially leave the market having to rethink the strategy of OPEC+, ING analysts said in a note.
The delay bucked the expectations of some in the market for OPEC+ to deliver the planned hike in output, they said.
This delayed supply rise means that maybe the group is more willing to support prices than many believe, they added.
The group is set to gradually unwind the 2.2-million-bpd cut over the coming months, while another 3.66 million bpd of production cuts will stay until the end of 2025.
Brent and West Texas Intermediate posted weekly declines last week of around 4% and 3%, respectively, as record U.S. output weighed on prices. But both contracts edged up on Friday on reports that Iran could launch a retaliatory strike on Israel within days.
It is questionable whether the price uptrend will be sustained as previous initial positive reaction to the delayed output hike and geopolitical tension have eventually fizzled off, according to Yeap Jun Rong, a market strategist at IG.
For now, oil prices may stay in a broad consolidation range, with any upside likely to find some resistance at the level of $78.50, he said.
