SINGAPORE: Oil prices rose more than 3 percent in early Asian trading Monday as OPEC+ considers cutting production to 1 million barrels per day at a meeting this week to support the market.
Brent crude futures were up $2.82 or 3.3 percent to $87.96 a barrel at 2337 GMT after falling 0.6 percent on Friday. US West Texas Intermediate crude was $82.09 a barrel, up $2.60 or 3.3 percent, after a loss of 2.1 percent in the previous session.
Oil prices have fallen for four straight months since June as COVID-19 lockdowns in China, the largest energy consumer, hurt demand, while rising interest rates and a rising US dollar weighed on global financial markets.
To support prices, the Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, are considering cutting production from 0.5 million to 1 million barrels per day ahead of Wednesday’s meeting, OPEC+ sources said. to Reuters.
This will be the group’s second consecutive monthly cut after cutting production by 100,000 bpd last month.
“Anything less than 500 kb/d would be brushed aside by the market, so we see a significant opportunity for a cut as low as 1 MB/d,” ANZ analysts said in a note.