WASHINGTON (dpa-AFX) - Oil prices rose sharply on Monday, buoyed by OPEC+'s decision to delay plans to increase production, and on rising concerns about tensions in the Middle East.
West Texas Intermediate crude oil futures for December closed up $1.98 or about 2.85% at $71.47 a barrel, extending gains to a fourth straight session.
Brent crude futures settled at $75.08 a barrel, gaining $1.98 or 2.71%.
The Organization of the Petroleum Exporting Countries and allies, collectively known as OPEC+, decided on Sunday to push back its December production increase by at least a month, prioritizing price support over regaining market share.
The group led by Saudi Arabia and Russia was supposed to begin a series of monthly production increases by adding 180,000 barrels per day from December. The decision has now been postponed due to recent pressure on prices from weak demand growth, especially in China and Europe.
On the geopolitical front, Iran's Supreme Leader Ayatollah Ali Khamenei has vowed that Israel and the U.S. would face a 'teeth-breaking response' for their actions against the country.
The Wall Street Journal reported that Iran is planning a complex attack on Israel, which may include missiles with high-powered warheads.
Meanwhile, markets await a meeting of China's National People's Congress this week. The meeting is expected to unveil a new fiscal stimulus package focused on stabilizing the economy through government debt swaps and capital infusion into banks.
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