(MENAFN- Trend News Agency)
Oil prices rose on Tuesday, after plunging to nine-month lows a
day earlier, on indications that producer alliance OPEC+ may enact
output cuts to avoid a further collapse in prices, reports with reference
to .
Brent crude futures for November settlement rose 65 cents, or
0.77%, to $84.71 per barrel by 0502 GMT. U.S. West Texas
Intermediate (WTI) crude futures for November delivery were up 64
cents at $77.35 per barrel.
In the previous two trading sessions, Brent plunged 7.1% while
WTI slumped 8.1% under the dual pressure of a surging dollar that
makes greenback-denominated crude more expensive for buyer using
other currencies and mounting concerns that rising interest rates
will trigger a recession that will curtail fuel demand.
On Tuesday, an easing greenback provided some relief to the oil
market. The dollar index was off a bit from the 20-year high
touched on the previous day.
Officials from major producers reacted to the past days of
declines by indicating they may take action to keep price
stability.
Iraqi Oil Minister Ihsan Abdul Jabbar on Monday said the
Organization of the Petroleum Exporting Countries (OPEC) and allies
including Russia, known as OPEC+, were monitoring the oil price
situation, wanting to maintain balance in the markets.
'We don't want a sharp increase in oil prices or a collapse,' he
said in an interview on Iraqi state TV.
Analysts said further sell offs in oil markets could see OPEC+
intervene to support prices by collectively reducing their
output.
'If we are to see cuts, they will need to be quite a bit larger
than the 100,000 barrels per day (bpd) agreed at the last meeting
in order to have a meaningful impact on the market,' analysts at
ING Economics said in a note.
OPEC+ boosted output this year after record cuts put in place in
2020 because of demand destruction caused by the COVID-19 pandemic.
However, the organization has failed in recent months to meet its
planned output increases, undermining the effectiveness of any
announced output reductions.
'Cyprus and Hungary are among countries that have expressed
opposition to the proposal. There were expectations of a deal being
reached this week but that now looks unlikely,' ANZ Research said
in a note.
The expected arrival of Hurricane Ian caused BP Plc and Chevron
Corp to shut in production on Monday at offshore oil platforms in
the Gulf of Mexico, the top U.S. offshore production region.
The category 2 storm was in the Caribbean and forecast to become
a major hurricane within two days.
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