Brent crude rose 11 cents to $91.91 a barrel at 0001 GMT, after climbing $2.94 in the previous session.
U.S. West Texas Intermediate (WTI) crude futures rose 5 cents to $86.57 a barrel after gaining $2.89 in the previous session.
The Organization of the Petroleum Exporting Countries and its Russia-led allies, collectively called OPEC+, meeting in Vienna later on Wednesday are discussing production cuts of up to 2 million barrels per day (bpd), Reuters has been told. an OPEC source.
It would be the group’s biggest production cut since demand was crushed by COVID-19 in 2020.
“A reduction in production on this scale would significantly tighten the market,” analysts at ANZ Research said in a note.
The United States is pushing OPEC+ producers not to go ahead with deep cuts, a source familiar with the matter tells Reuters, as President Joe Biden seeks to prevent a rise in oil prices. gasoline in the United States.
The actual supply impact of a lower production target would be limited, as several OPEC+ countries are already pumping well below their existing quotas. In August, OPEC+ missed its production target of 3.58 million bpd.
However, an agreement on deep cuts “would send a strong message that the group is committed to supporting the market”, ANZ analysts said.
While the market is expected to tighten further with European Union sanctions on Russian oil looming in December, the demand outlook remains clouded by fears of a global recession.
“The U.S. dollar, global growth concerns and EU sanctions set to take effect on Dec. 5 all remain crucial drivers of near-term oil prices,” said Vivek Dhar, commodities analyst at the Commonwealth Bank, in a note.
Brent crude rose 11 cents to $91.91 a barrel at 0001 GMT, after climbing $2.94 in the previous session.
U.S. West Texas Intermediate (WTI) crude futures rose 5 cents to $86.57 a barrel after gaining $2.89 in the previous session.
The Organization of the Petroleum Exporting Countries and its Russia-led allies, collectively called OPEC+, meeting in Vienna later on Wednesday are discussing production cuts of up to 2 million barrels per day (bpd), Reuters has been told. an OPEC source.
It would be the group’s biggest production cut since demand was crushed by COVID-19 in 2020.
“A reduction in production on this scale would significantly tighten the market,” analysts at ANZ Research said in a note.
The United States is pushing OPEC+ producers not to go ahead with deep cuts, a source familiar with the matter tells Reuters, as President Joe Biden seeks to prevent a rise in oil prices. gasoline in the United States.
The actual supply impact of a lower production target would be limited, as several OPEC+ countries are already pumping well below their existing quotas. In August, OPEC+ missed its production target of 3.58 million bpd.
However, an agreement on deep cuts “would send a strong message that the group is committed to supporting the market”, ANZ analysts said.
While the market is expected to tighten further with European Union sanctions on Russian oil looming in December, the demand outlook remains clouded by fears of a global recession.
“The U.S. dollar, global growth concerns and EU sanctions set to take effect on Dec. 5 all remain crucial drivers of near-term oil prices,” said Vivek Dhar, commodities analyst at the Commonwealth Bank, in a note.