The price of oil jumped by almost 2% after OPEC+, which includes the Organization of the Petroleum Exporting Countries plus Russia and other allies, decided to push back its December production increase by one month. OPEC+ was due to increase output by 180,000 barrels per day in December.
Escalating tensions in the Middle East have also given oil a boost amid supply concerns. Iran has stepped up its rhetoric against Israel, with Supreme Leader Ayatollah Ali Khamenei warning of a “crushing response.” Tehran also informed the allies that the attack would be carried out after the US presidential election, but before the January inauguration.
Experts warn that oil prices have become increasingly volatile, with concerns about oversupply next year and weak demand in China offsetting concerns about the situation in the Middle East, which supplies about a third of the world's crude oil.
This week, investors will focus on the US presidential election and a meeting of China's top legislative body.