Oil jumps 3% after OPEC announcement amid anticipation of decisions from China and the United States.

Oil prices rose during trading on Monday after the Organization of the Petroleum Exporting Countries (OPEC+) decided to postpone plans to increase production for another month, rising by more than 2% on Monday following the OPEC+ decision, while the market is preparing for a crucial week that includes the U.S. presidential elections and an important meeting of Chinese authorities in China.

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In terms of trading, Brent crude futures rose by 3.15% to $74.99 per barrel, while West Texas Intermediate (WTI) crude futures dropped by 2.97% to $71.56.

What Affects Oil Movements?

OPEC+ announced on Sunday that it would extend the scheduled oil production cuts of 2.2 million barrels per day for another month in December, after the increase had already been postponed from October due to falling prices resulting from weak demand, prompting the group to delay production increases again.

OPEC+ is set to gradually ease the production cut of 2.2 million barrels per day over the coming months, while other production cuts of 3.66 million barrels per day will remain in place until the end of 2025. The group was scheduled to increase production by 180,000 barrels per day starting in December.

This came after both Brent crude and WTI recorded weekly declines of about 4% and 3%, respectively, during the past week, as high production levels in the United States affected prices. However, both contracts rose during Friday's session amid reports from the occupying government indicating that Iran might respond with a retaliatory strike on the occupied Palestinian territories within days.

On the other hand, markets are anticipating the start of the U.S. presidential elections today, with final results expected on Tuesday, as polls indicate a close race between votes supporting Democratic Vice President Kamala Harris and those supporting former Republican President Donald Trump.

At the same time, markets are currently pricing in a nearly complete probability that the U.S. Federal Reserve will cut interest rates by 25 basis points at the Federal Open Market Committee meeting on Thursday.

In China, the Standing Committee of the National People's Congress will meet from Monday to Friday, and it is expected to approve additional stimulus measures to boost the economy, although analysts say that a significant portion may go towards helping reduce local government debt.