Measure It would reduce supply in an oil market that energy executives and analysts say is already tight due to good demand, lack of investment and supply problems.
Brent oil it gained $2.94, or 3.3%, at $91.80 a barrel. US crude West Texas Intermediate (WTI) was up $2.52, or 3.03%, at $86.15.
Group sources have said that OPEC+, which includes Russia, is discussing production cuts of more than 1 million barrels per day (bpd). Oil extended its gains after Bloomberg reported that OPEC+ was considering a 2 million bpd one.
“We expect there to be a substantial cut, which will not only help tighten physical fundamentals, but send an important signal to the market,” Fitch Solutions said in a note.
The Kuwaiti Oil Minister said that OPEC+ would make a proper decision to ensure energy supply and serve the interests of producers and consumers.
OPEC+ has boosted production this year after cuts in 2020 when the pandemic reduced demand.
In recent months, the group has failed to meet its planned production increases, missing 3.6 million bpd in August.
The production target cut being considered is justified by the sharp decline in oil prices from recent highs, Goldman Sachs said, adding that this reinforced its bullish outlook.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
