AGL 38.35 Increased By ▲ 0.26 (0.68%)
AIRLINK 142.15 Increased By ▲ 5.81 (4.26%)
BOP 9.15 Decreased By ▼ -0.05 (-0.54%)
CNERGY 5.70 Increased By ▲ 0.98 (20.76%)
DCL 9.05 Increased By ▲ 0.20 (2.26%)
DFML 38.75 Increased By ▲ 0.41 (1.07%)
DGKC 86.69 Increased By ▲ 1.24 (1.45%)
FCCL 35.70 Increased By ▲ 0.55 (1.56%)
FFBL 76.69 Increased By ▲ 0.48 (0.63%)
FFL 12.68 Increased By ▲ 0.02 (0.16%)
HUBC 109.27 Increased By ▲ 0.57 (0.52%)
HUMNL 15.00 Increased By ▲ 0.27 (1.83%)
KEL 5.76 Increased By ▲ 0.18 (3.23%)
KOSM 8.23 Increased By ▲ 0.27 (3.39%)
MLCF 41.52 Increased By ▲ 0.74 (1.81%)
NBP 72.61 Increased By ▲ 1.67 (2.35%)
OGDC 201.05 Increased By ▲ 5.80 (2.97%)
PAEL 28.10 Increased By ▲ 1.14 (4.23%)
PIBTL 7.66 Increased By ▲ 0.20 (2.68%)
PPL 173.29 Increased By ▲ 5.27 (3.14%)
PRL 27.10 Increased By ▲ 0.91 (3.47%)
PTC 20.65 Increased By ▲ 0.31 (1.52%)
SEARL 97.50 Increased By ▲ 4.75 (5.12%)
TELE 8.12 Increased By ▲ 0.28 (3.57%)
TOMCL 35.70 Increased By ▲ 0.21 (0.59%)
TPLP 9.25 Increased By ▲ 0.34 (3.82%)
TREET 17.55 Increased By ▲ 0.26 (1.5%)
TRG 61.30 Increased By ▲ 2.03 (3.43%)
UNITY 31.20 Increased By ▲ 0.18 (0.58%)
WTL 1.44 Increased By ▲ 0.07 (5.11%)
BR100 11,066 Increased By 164.9 (1.51%)
BR30 33,482 Increased By 828.3 (2.54%)
KSE100 102,657 Increased By 1299.5 (1.28%)
KSE30 31,819 Increased By 330.9 (1.05%)

Oil prices rose more than 2% on Monday on a decision by OPEC+ to delay by a month plans to increase output, while the market braced for a crucial week that includes the U.S. presidential election.

U.S. Democratic candidate Kamala Harris and Republican Donald Trump remain virtually tied in opinion polls ahead of Tuesday’s Election Day, and the winner might not be known for days after voting ends.

Brent futures were up $1.73 per barrel, or 2.4%, to $74.83 a barrel at 1324 GMT. U.S. West Texas Intermediate (WTI) crude was up $1.79 a barrel, or 2.6%, to $71.28.

Oil prices up slightly

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 (bpd) for another month in December, with an increase already delayed from October because of falling prices and weak demand.

OPEC+ had been due to increase output by 180,000 bpd from December.

“Considering ongoing economic growth concerns, we believe the group wants more clarity on the economic impact of the interest rate cuts in the US and the fiscal and monetary policy easing in China,” said UBS analyst Giovanni Staunovo.

“The group should also have clarity on the next U.S. president and the impact of compensation cuts from countries that produced above their ceiling in the past.”

Speaking at an industry event in Abu Dhabi, the CEO of Italian energy company Eni said that OPEC+ oil supply cuts and recent efforts to unwind them had increased volatility in energy markets and hampered investment in new production.

Oil price volatility will be high this week, analysts said, with market participants awaiting Iran’s response to recent Israeli attacks and the U.S. election outcome.

On Thursday, U.S. news website Axios said Israeli intelligence suggested that Iran was preparing to attack Israel from Iraq within days, citing two unidentified Israeli sources.

“Senior advisors to Trump have expressed strong support for striking Iranian nuclear facilities and bringing back maximum pressure sanctions,” said Helima Croft, head of global commodity strategy at RBC Capital Markets.

A Harris administration, on the other hand, would probably not look to ratchet up sanctions pressure and would focus on bringing the war to an end as quickly as possible, Croft added.

Investor focus this week will be on the U.S. Federal Reserve as economists expect interest rates to be cut by 25 basis points on Thursday, and on China, where the Standing Committee of the National People’s Congress meets from Monday to Friday and is expected to approve additional stimulus to boost the slowing economy.

Comments

200 characters