Oil rises as more output cuts look likely

Singapore — Oil prices rose on Tuesday, snapping a multisession losing streak ahead of a crucial meeting of oil cartel Opec+, which is widely expected to deepen and extend cuts to oil production amid fears of supply being consistently higher than demand.

Brent crude futures were up 45c, or 0.6%, at $80.43 a barrel at 1.52am GMT, on track to snap a four-day losing streak. US West Texas Intermediate (WTI) crude futures were trading 43c higher, also 0.6%, at $75.28 a barrel, after falling for three straight sessions.

Opec+ will hold an online ministerial meeting on November 30 to discuss production targets for 2024.

“Crude oil was up sharply in early trade amid reports that Opec would reduce its output quotas,” ANZ Research said in a client note on Tuesday.

The group, whose move last week to postpone the meeting to iron out disagreements over production targets for African producers sent oil prices tumbling, has since moved closer to a compromise, four Opec+ sources said on Friday, potentially helping de facto leader Saudi Arabia edge closer to consensus on deepening oil production cuts.

Strong production by non-Opec countries such as the US has also added to pressure on prices, analysts say.

“Saudi Arabia may be comforted that US fuel prices have fallen for 60 straight days. This may soften the US opposition to any move to tighten oil markets and support prices,” ANZ said. 

Reuters