© Reuters. The pumps operate inside an oil field in California, USA, on January 17, 2022. Photo: Lucy Nicholson-Reuters.
LONDON (Reuters) – Oil prices rose nearly $ 3 a barrel on Tuesday on expectation that the OPEC + group could accept a significant cut in crude oil production when it meets this week, as a weaker dollar has made purchases cheaper. of oil.
The OPEC + group’s producers appear intent on cutting production when they meet Wednesday, putting pressure on supplies in an oil market that executives and energy analysts say is already strained due to strong demand, lack of investment and supply problems.
Brent crude futures rose $ 2.94, or 3.3 percent, to stand at $ 91.80 a barrel.
US West Texas Intermediate crude futures closed higher $ 2.89, or 3.5 percent, at $ 86.52 a barrel.
Sources in OPEC +, which includes Russia, said the bloc was considering cutting production by more than 1 million barrels per day. Oil extended its gains after Bloomberg reported OPEC + was considering a two-million-barrel-a-day cut.
Kuwaiti Oil Minister Mohammad Al-Faris said Tuesday that the group will make the appropriate decision to serve the interests of producers and consumers.
OPEC + increased production this year after record cuts in 2020 due to the hit to demand caused by the Corona pandemic. But the organization has failed to meet planned production increases in recent months, as production dropped from August’s target rate of 3.6 million barrels per day.
And oil prices have also been driven by the trend to suffer a fifth consecutive daily loss against a basket of currencies, with investors expecting the Federal Reserve to slow the pace of interest rate increases.
The easing of hawkish policy by the US central bank would allay some fears of a US recession, which in turn could dampen demand for oil.
Meanwhile, a senior US Treasury official said Group of Seven sanctions on Russia will be implemented in three stages, first against Russian oil, then diesel, and then low-value products.
The sanctions of the G7 and the European Union, which will be in two phases, are expected to start on December 5.
(Prepared by Mohamed Ali Farag and Ahmed El-Sayed for the Arab Bulletin – Edited by Mustafa Saleh)
