With oil prices weak, OPEC+ postpones increases again

Saudi Arabia and seven other nations involved in oil production announced on Sunday that they have decided to delay the scheduled rise in oil production until the end of December as, per a statement published on the OPEC website.

There was no explanation provided for the postponement; however some analysts had anticipated it to happen. The decision made on Sunday seems to be aimed at preventing any disruption in the markets with the upcoming close U.S presidential election, on Tuesday which could lead to market instability.

OPEC+, initially revealed in June their plan to slowly boost production by 2 million barrels daily. Equivalent to about ̴  of worldwide supply. Come October which had sparked significant worry within the market circles but later in September opted to defer the move till, at least December.

The team might have chosen not to boost production due to the recent drop in oil prices caused by traders perceiving a decrease, in immediate geopolitical risks linked to the Israel Hamas conflict.

In October there were concerns about disruptions in oil supplies due to tensions between Israel and Iran causing Brent crude prices to briefly surpass $80 a barrel. However by Friday prices had decreased to around $73 a barrel as attention turned back to factors such as reduced demand, from China. Some experts argue that at $80 a barrel it is still considered a modest price given the geopolitical uncertainties in a key oil producing area.

"In a communication from JP Morgan analysts stated that while geopolitical concerns were on hold, for now the focus has returned to market fundamentals."

OPEC+, which consists of Russia along with Iraq and the United Arab Emirates and Kuwait among others in the group have shown interest, in increasing oil production. Have faced challenges in deciding the opportune moment to start easing production restrictions.