Oil futures rose on Monday as OPEC+ announced it would delay lifting production cuts by a month and traders understood a new report said Iran was planning a “strong and complex” attack on Israel. rose nearly 3%.
West Texas Intermediate (CL=F) futures rose to settle at $71.47 per barrel, while international benchmark Brent crude oil futures (BZ=F) closed at $75.08 per barrel. Ta.
The Organization of the Petroleum Exporting Countries, along with Russia and other countries, announced that it would continue to cut production for one month until the end of 2024.
The decision to postpone an additional 180 billion barrels per day (bpd) from December had already been postponed in recent months due to fluctuations in oil prices.
“This delay is due to OPEC+’s efforts to manage current market volatility, including a decline in global demand due to a slowdown in the Chinese economy,” Rania Gul, senior market analyst at brokerage firm XS.com, said in a note on Monday. “This may reflect a calculated strategy.” .
Prices also rose following a report in the Wall Street Journal that oil-producing country Iran is planning an attack on Israel using a powerful warhead.
Oil futures have been volatile over the past month due to a spate of attacks between Israel and Iran and speculation over whether Tel Aviv will target oil facilities in Tehran.
Markets bet on that possibility last Monday, as oil prices briefly fell 6% following Israel’s measured attack on Iran in the early hours of October 26th.
Since then, traders have been increasingly pricing in the possibility of heightened tensions in the region.
“If we see a large-scale, escalating attack, it is likely that Israel will escalate as well,” Dennis Kistler, senior vice president at BOK Financial, said in a note to clients on Monday.
Brent on Monday was flat for the year, while WTI has risen about 1% in the same period.
Ines Ferre is a senior business reporter at Yahoo Finance. Follow @ines_ferre on X.
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