Oil Climbs As OPEC Ponders Supply Cut
(MENAFN- Baystreet.ca) Oil Climbs as OPEC Ponders Supply Cut
Petroleum prices inched up on Wednesday extending 3% gains in the previous session ahead of a meeting of producers in the Organization of the Petroleum Exporting Countries and allies led by Russia, to discuss a big output cut in what energy executives and analysts see as a tightly supplied market.
Brent crude rose 11 cents to $91.91 U.S. a barrel early Wednesday morning after climbing $2.94 in the previous session.
OPEC+ ministers were to meet in Vienna later on Wednesday, to discuss output cuts as big as two million barrels per day (bpd).
That would be the group's biggest production cut since demand was smashed by COVID 19 in 2020.
The United States is pushing OPEC+ producers not to go ahead with deep cuts, a source familiar with the matter told Reuters, as President Joe Biden looks to prevent a rise in U.S. gasoline prices.
The real impact on supply from a lower output target would be limited as several OPEC+ countries are already pumping well below their existing quotas. In August, OPEC+ missed its production target by 3.58 million bpd.
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