Moneycontrol
Get App
Last Updated : Sep 10, 2019 08:13 AM IST | Source: Reuters

Oil rises on hopes of extended OPEC production cuts

Brent was up 42 cents, or 0.7%, at $63.01 a barrel by 0104 GMT, while US crude was 46 cents, or 0.8%, higher at $58.31 a barrel.


Oil futures rose on Tuesday, potentially heading for a fifth day of gains, amid optimism that OPEC and other countries may agree to extend production cuts in a bid to support prices.

Brent was up 42 cents, or 0.7%, at $63.01 a barrel by 0104 GMT, while US crude was 46 cents, or 0.8%, higher at $58.31 a barrel.

US oil gained more than 2% on Monday, while Brent finished the day 1.7% higher as the market reacted to the appointment by Saudi Arabia’s king of his son, Prince Abdulaziz bin Salman, as energy minister on Sunday.

Close

Prince Abdulaziz, a long-time member of the Saudi delegation to the Organization of the Petroleum Exporting Countries (OPEC), said the pillars of Saudi Arabia’s policy would not change and a global deal to cut oil production by 1.2 million barrels per day would be maintained.

He added that the so-called OPEC+ alliance between the OPEC and non-member countries including Russia would be in place for the long term.

A meeting of OPEC and OPEC+ countries this week in Abu Dhabi this week “is stirring up hopes for additional supply cuts,” said Stephen Innes, Asia Pacific market strategist at AxiTrader.

Still, Russia’s oil output in August exceeded its quota under the OPEC+ agreements.

Should oil end Tuesday higher it will be the longest run of gains since late July but headwinds remain as the US-China trade war rumbles on.

Executives at the annual Asia Pacific Petroleum Conference said on Monday they expect oil prices this year to be pressured by uncertainties surrounding the global economy, the US-China trade war and increasing US supplies.

Moneycontrol Ready Reckoner
Now that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.

First Published on Sep 10, 2019 08:13 am
Sections
Follow us on