On Monday, oil prices increased by more than $2 a barrel as investors anticipated potential actions by OPEC+ producers to reduce output and boost prices at a meeting later in the day.
After climbing 0.7% on Friday, Brent oil futures increased by $2.43, or 2.6%, to $95.45 a barrel at 0850 GMT. After rising by 0.3% the day before, U.S. West Texas Intermediate crude was up $2.21, or 2.5%, at $89.08. Due to a public holiday, American markets are closed on Monday.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, will consider oil output cuts of 100,000 barrels per day among other alternatives at their meeting later on Monday, according to sources from the organization. As investors anticipated potential actions by OPEC+ producers to cut output and support prices at a meeting later in the day, oil prices increased by more than $2 a barrel on Monday, extending gains.
What To Expect From OPEC+ Upcoming Meeting
Oil output cuts of 100,000 barrels per day will be one of the topics up for discussion at the Organization of the Petroleum Exporting Countries (OPEC) and its allies’ meeting later on Monday, according to sources within the organization.
Since reaching multi-year highs in March, oil prices have declined because of worries that rising interest rates and COVID-19 restrictions in some regions of China might impede global economic expansion and reduce oil consumption. Although the city continues to be on high alert, lockdown restrictions in Shenzhen, China’s southern technological powerhouse, were relaxed on Monday as new illnesses showed indications of stabilizing. Meanwhile, efforts to resurrect the 2015 nuclear agreement between the West and Iran have run into a fresh roadblock. If successful, this may raise the market’s supply of Iranian crude.
According to a Western official, the White House on Friday rejected Iran’s demand that the conclusion of U.N. nuclear watchdog investigations is made a condition of any agreement.
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