Oil prices rose more than 3% on Monday in Asian markets, pushed by the possibility of a production cut – around one million barrels per month – by the Organization of Petroleum Exporting Countries and its allies (OPEC +) . A barrel of American West Texas Intermediate (WTI) gained 3.3% to $82.12. The same rise for the price of a barrel of Brent from the North Sea, which reached 87.94 dollars.
Both global crude benchmarks have fallen sharply in recent months amid recession-driven slumps in demand hitting major economies. OPEC + will physically meet this Wednesday in Vienna, headquarters of the oil producers cartel, “for the first time since March 2020” and the emergence of the Covid-19 pandemic, the alliance announced this Saturday in a press release.
“It’s only a matter of time before oil returns to $100 a barrel”
Representatives of the thirteen members of the Organization of Crude Exporting Countries (OPEC), led by Saudi Arabia, and its ten allies led by Russia, meet amid rumors of major production cuts amid fears of recession. Before the pandemic, the producers met twice a year in the Austrian capital.
But since the spring of 2020, the 23 members meet every month, by videoconference, to better hone their goals in the face of volatility in demand. “It will only be a matter of time before oil returns to $100 a barrel, especially with the supply tightening towards the end of the year,” said DBS Suvro Sarkar Bank analyst, who expects further earnings.
Source: BFM TV