Oil producers stick to existing output pact

OPEC and non-member states have agreed to abide by an existing pact to increase output by 400,000 barrels per day in November.

The world's major oil producers on Monday decided to stick with the pact that they agreed on in July. Under it, they scale back their coordinated cuts and increase daily production by that amount each month.

The decision came amid speculation that they would opt to add extra supplies in the face of rising oil prices. The increase in prices is being driven by strong demand associated with the reopening of economies.

Some media outlets reported that the countries are wary of a resurgence of coronavirus infections, which could lead to an economic slowdown and a slump in demand.

Market participants worry that crude oil prices will remain elevated, dealing a blow to oil-consuming economies trying to recover from the pandemic-induced downturn.