Brent up 1.9, WTI up 2
OPEC delays December output hike by one month
Focus on US election, China NPC meet this week
BEIJINGSINGAPORE, Nov 4 Reuters Oil prices extended gains on Monday, rising more than 1 on a decision by OPEC to delay by a month plans to increase output, while the market braced for a week that spans a U.S. presidential election and a key meeting in China.
Brent futures rose by 1.39 per barrel, or 1.9, to stand at 74.49 a barrel by 0722 GMT. U.S. West Texas Intermediate WTI crude rose by 1.41 a barrel, or 2.0, to stand at 70.90.
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.
The grouping had been due to increase output by 180,000 bpd from December.
While the delay until January does not change fundamentals significantly, it does potentially leave the market having to rethink the strategy of OPEC, ING analysts said in a note.
The delay bucked the expectations of some in the market for OPEC to deliver the planned hike in output, they added.
This delayed supply increase means that maybe the group are more willing to support prices than many believe, they said.
The group is set to gradually unwind the 2.2millionbpd cut over the coming months, while another 3.66 million bpd of production…