Oil climbs ahead of OPEC+ meeting

Organisation likely to keep oil output quotas unchanged for October

NEW YORK:

Oil prices rose on Friday on expectations that OPEC+ will discuss output cuts at a meeting on September 5, 2022, though concern over China’s COVID-19 curbs and weakness in the global economy loomed over the market.

Brent crude futures rose $1.62, or 1.8%, to $93.98 a barrel by 1722 GMT, while U.S. West Texas Intermediate (WTI) crude futures rose $1.22, or 1.4%, to $87.83 a barrel.

Both benchmarks slid 3% to two-week lows in the previous session. Brent was on course for a weekly drop of 7%, and WTI of 5.7%.

OPEC and allies led by Russia – a group known as OPEC+ – are due to meet on September 5 against a backdrop of expected demand declines, though top producer Saudi Arabia says supply remains tight.

OPEC+ is likely to keep oil output quotas unchanged for October at Monday’s meeting, three OPEC+ sources said, although some sources would not rule out a production cut to bolster prices that have slid from sky-high levels hit earlier this year.

This week, OPEC+ revised market balances for this year and now sees demand lagging supply by 400,000 barrels per day.

Published in The Express Tribune, September 3^rd, 2022.

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