OPEC+ is nearing an agreement to delay its oil production increase plan by three months, with no opposition within the group. This decision aims to address potential supply surpluses and stabilize crude prices, which have been under pressure due to weak demand and increased output from non-OPEC+ countries. Brent crude futures have fallen 17% since early July. The final decision is expected in an upcoming online meeting.
Meanwhile, the U.S. Treasury has imposed sanctions on 35 entities and vessels involved in exporting Iranian oil, citing it as a funding source for Iran's nuclear and military programs. This, along with OPEC+ discussions, pushed oil prices up by 3% during trading. WTI January futures closed up 2.70% at $69.94 per barrel, while Brent February futures rose 2.49% to $73.62 per barrel.
However, the American Petroleum Institute reported significant increases in U.S. crude and gasoline inventories, which slightly narrowed oil price gains.
