Oil prices jumped 2% on Monday after the 'OPEC+' alliance reaffirmed its plan to keep production levels steady, coupled with the halt in exports by the Caspian Pipeline Consortium following a major attack, as well as tensions between the United States and Venezuela that raised concerns about supplies.
Brent crude futures rose $1.22 or 1.96% to $63.60 per barrel by 07:32 GMT. The American West Texas Intermediate (WTI) crude gained $1.22 or 2.08% to $59.77 per barrel.
It's worth noting that both oil grades posted a fourth consecutive weekly decline, marking the longest losing streak since 2023, as expectations of a global supply increase pressured prices.
Initially, the Organization of the Petroleum Exporting Countries (OPEC) and its allies agreed to pause production hikes in early November to slow efforts to regain market share amid fears of a supply glut.
Following a meeting held on Sunday, OPEC stated that it 'reaffirmed the importance of a cautious approach and maintaining full flexibility to continue the suspension or reversal of additional voluntary production adjustments.'
Analyst Anh Fam from the London exchange group commented: 'The market reacted positively to this news. For a while, expectations were focused on an oil supply surplus, so OPEC+'s decision to maintain the production target level provided some relief and helped stabilize supply growth forecasts for the coming months.'
