By Ken Afor
On Tuesday, oil prices ended a multiple losing streak, due to anticipation of an urgent OPEC+ gathering with hopes that the coalition will possibly lower the production rate of oil due to fear of oversupply surpassing the need for it.
The price of Brent crude futures grew by 45 cents, an increase of 0.6%, to $80.43 per barrel at 0152 GMT on the market, meaning that four days of continuous losses were about to be broken. Concurrently, U.S. West Texas Intermediate (WTI) crude futures rose 43 cents, a 0.6% climb, to $75.28 per barrel after three downward days of trading.
On November 30th, the Organization of the Petroleum Exporting Countries (OPEC+) will be having an online ministerial gathering to go over production objectives for 2024. OPEC+ includes OPEC and its partners, with Russia being one of them.
“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.
Last Friday, four OPEC+ sources told Reuters that the group, which had previously chosen to delay their meeting from a week ago to sort out disagreements regarding production targets for African producers, leading to a drop in oil prices, had progressed towards an agreement.
This development could help de facto leader Saudi Arabia get nearer to finding agreement regarding a deepening of oil production cuts.
Analysts state that high production levels from non-OPEC countries, like the United States, have created more strain on price levels.
“Saudi Arabia may be comforted that US gasoline 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.
