Oil Prices Rise After OPEC+ Decides To Extend Production Cuts Till December: Retail Goes Bullish

Oil prices gained over 2% on Monday after the Organization of the Petroleum Exporting Countries plus Russia and other allies (OPEC+) said it would extend its output cut till December.

OPEC said in a statement that the eight OPEC+ countries Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, which previously announced additional voluntary adjustments in April and November 2023, have agreed to extend the Nov. 2023 voluntary production adjustments of 2.2 million barrels per day for one month until the end of Dec. 2024.

The group was reportedly set to raise the output by 180,000 barrels per day in Dec. 2024.

Other factors, too, have been weighing on oil prices. Although the commodity witnessed a decline in prices last week due to record U.S. output, reports about Iran conducting a retaliatory strike on Israel has provided a decent support.

Reuters cited UBS analyst Giovanni Staunovo saying that “considering the 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.”

The report added that the in China, the Standing Committee of the National People's Congress will meet from Monday to Friday and is expected to approve further stimulus to boost the slowing economy. However, the bulk of it may go toward reducing local government debt, the report said, citing analysts.

On Monday morning, Brent crude futures maturing in Jan. 2025 were trading over 2.5% higher. At the same time, West Texas Intermediate contracts maturing in Dec. 20214 were up over 2.8%.

Meanwhile, retail investors on Stocktwits have been expressing bullish takes on the United States Oil Fund ($USO).

For updates and corrections email newsroom@stocktwits.com