Oil prices increased in early trading on Tuesday, ending several sessions of losses. A crucial OPEC+ meeting is expected to be held where markets anticipate production cuts to be improved and extended. There are fears that supply will continue to exceed demand, which makes the situation worrying.
At 0152 GMT, Brent crude futures increased by 45 cents, which is equivalent to 0.6 percent, reaching $80.43 per barrel. This marks the end of a four-day losing streak. Meanwhile, US West Texas Intermediate crude futures rose by 43 cents, or 0.6 percent, to $75.28 per barrel, after declining for three consecutive sessions.
OPEC+ (including OPEC and allies like Russia) will discuss 2024 production targets in an online ministerial meeting on Nov 30.
ANZ Research reported that crude oil sharply rose in early trading due to OPEC’s planned reduction of production quotas on Tuesday.
Four sources from OPEC+ told Reuters on Friday that the group was close to reaching a compromise on production quotas, which could help reach a consensus on further cuts.
The coalition decided to delay the meeting last week in order to address the discrepancies related to the production targets of African producers. This move subsequently resulted in a decrease in oil prices.
Analysts suggest that the strong production from non-OPEC countries, particularly the United States, is putting pressure on oil prices.
ANZ reported that US gasoline prices have fallen for 60 consecutive days, which may ease US opposition to tighter oil markets and support prices.
