Oil prices rose in early trading on Tuesday, ending a series of losses that lasted several sessions before a crucial OPEC+ meeting, and markets widely expect to see production cuts increased and extended amid fears that supply will continue to exceed demand.
Brent crude futures rose, by 0152 GMT, by 45 cents, equivalent to 0.6 percent, to $80.43 per barrel, on its way to ending a four-day losing streak. As for US West Texas Intermediate crude futures, they rose 43 cents, or 0.6 percent, to $75.28 per barrel, after declining for three consecutive sessions.
OPEC+, which includes the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, will hold an online ministerial meeting on November 30 to discuss production targets for 2024.
“Crude oil rose sharply in early trading amid reports that OPEC will reduce production quotas,” ANZ Research said in a note to clients on Tuesday.
Four OPEC+ sources told Reuters on Friday that the group was close to reaching a compromise on production quotas, which could help reach consensus on further cuts.
The coalition moved last week to postpone the meeting with the aim of resolving differences over production targets for African producers, which led to a decline in oil prices.
Analysts say strong production from non-OPEC countries such as the United States is adding pressure on prices.
ANZ said, “There is a sense of relief that US gasoline prices have fallen for 60 days in a row. This may ease US opposition to any move to tighten oil markets and support prices.”
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