WTI moves above $70.00 as OPEC+ delays output increase, eyes on US presidential election

• WTI price rises as the OPEC+ group has delayed the planned output increase.

• OPEC+ has extended its production cut of 2.2 million barrels per day through the end of December 2024.

• Traders observe the upcoming US presidential election and the Fed’s policy decision this week.

West Texas Intermediate (WTI) Oil price appreciated more than 1% on Monday, trading around $70.20 per barrel during Asian hours. The recent increase in crude Oil prices can be attributed to the delay in a planned output increase by the OPEC+ coalition, which includes the Organization of the Petroleum Exporting Countries and its allies, such as Russia.

On Sunday, the OPEC+ alliance agreed to extend its production cut of 2.2 million barrels per day (bpd) through the end of December 2024. citing weak demand and rising supply outside the group. Additionally, the member countries reaffirmed their commitment to "achieve full conformity" with production targets and to compensate for any overproduction by September 2025.

Traders are closely watching the upcoming US presidential election on Tuesday, as polls indicate a tight race between Democratic candidate Kamala Harris and Republican nominee Donald Trump across seven battleground states, according to the final New York Times/Siena College poll cited by Reuters.

The survey shows Vice President Harris with slight leads in Nevada, North Carolina, and Wisconsin, while former President Trump has a narrow advantage in Arizona. The candidates are in a dead heat in Michigan, Georgia, and Pennsylvania. Conducted from October 24 to November 2, the poll suggests that all matchups fall within a 3.5% margin of error.

In addition to the election, traders are also focused on the upcoming US Federal Reserve (Fed) policy decision, with expectations of a modest 25 basis point rate cut this week. The CME FedWatch Tool currently shows a 99.6% probability of a quarter-point rate reduction by the Fed in November.

In China, the Standing Committee of the National People's Congress is meeting from November 4 to 8, during which it is expected to approve additional stimulus measures aimed at bolstering the slowing economy. Any additional measures taken could have a positive impact on Oil prices, given that China is the world's largest Oil importer.