Oil prices see surge as OPEC+ prepares for pivotal meeting on production cuts
Date
11/28/2023 2:11:23 AM
(MENAFN) Oil prices experienced an upward surge on Tuesday, putting an end to a multi-session decline in anticipation of a pivotal OPEC+ meeting. The meeting, widely expected to result in increased and extended production cuts, reflects concerns over the persistent imbalance between supply and demand in the oil market.
As of 0152 GMT, brent crude futures recorded a 0.6 percent increase, equivalent to 45 cents, reaching USD80.43 per barrel. This positive movement marked the conclusion of a four-day losing streak. Similarly, US West Texas Intermediate crude futures rose by 0.6 percent, or 43 cents, reaching USD75.28 per barrel, following three consecutive sessions of decline.
OPEC+—comprising the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia—will convene in an online ministerial meeting on November 30 to deliberate on production targets for the year 2024.
ANZ Research noted on Tuesday, "Crude oil rose sharply in early trading amid reports that OPEC will reduce production quotas." This observation aligns with expectations that the group is poised to adjust production quotas, potentially reaching a compromise that would facilitate consensus on further production cuts.
On Friday, four OPEC+ sources revealed to Reuters that the group is nearing a consensus on production quotas, a development seen as a positive step towards an agreement on additional cuts. Last week, the coalition took the decision to postpone the meeting, aiming to address discrepancies over production targets for African producers, a factor contributing to the recent decline in oil prices.
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