Oil prices rise more than $1 per barrel ahead of OPEC+ meeting
Oil prices rose by over $1 a barrel on Monday, extending gains as investors see possible moves by OPEC+ producers to cut production and support prices at a meeting later in the day.
Brent crude futures were up $1.88, or 2%, to $94.90 a barrel as of 0345 GMT after gaining 0.7% on Friday. West Texas Intermediate (WTI) crude was up $1.73, or 2%, to $88.60 a barrel, after gaining 0.3% in the previous session.
US markets are closed on Monday for a public holiday.
At today's meeting, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, may decide to maintain current production levels or even cut production to support prices, despite supply being limited.
OPEC+ will probably keep production tight to protect the oil price amid demand cuts caused by renewed lockdowns in parts of China.
Russia, the world's second-largest oil producer, and key OPEC+ member, currently does not support production cuts and will likely insist on keeping production steady when the group meets on Monday.
By the way, while the group is also expected to keep production unchanged, it could be bullish as the rhetoric looks set to halt the recent decline in prices.
Downside risks also remain with potential exports from Iran in the event of a production cut, amid ongoing nuclear deal negotiations and recession fears.
Oil prices have slumped in the past three months after hitting multi-year highs in March on concerns that interest rate hikes in parts of China, the world's largest crude importer, and COVID-19 curbs could slow global economic growth and reduce oil demand.
Currently, 33 cities in China are under partial or full lockdown, affecting more than 65 million people, according to a local media estimate, as the world's second-largest economy adheres to a strict zero-COVID policy.
Negotiations to revive the West's 2015 nuclear deal with Iran have been dragged on with a deal that could allow Tehran to increase exports and improve global supply.
The White House on Friday refused to associate the deal with the closing of investigations by the UN nuclear watchdog, a day after Iran reopened the issue, according to a Western diplomat.
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