Oil price news: Oil creeps higher as Saudis push OPEC+ to trim production quotas
BNN Bloomberg
Oil edged higher after a string of losses as the market weighed the possibility of deeper output cuts from OPEC+.
Brent crude traded near US$81 a barrel, reversing losses from previous sessions, with prices effectively treading water before a meeting of the producer group later in the week. OPEC+'s de-facto leader Saudi Arabia has asked other members to reduce their production quotas to shore up markets, although some members are resisting, delegates said.
“There will be no getting away from OPEC this week,” said Tamas Varga, an analyst at brokerage PVM. “Barring any negative surprise, the recent drop in prices will probably be viewed as a buying opportunity, especially if further cuts are agreed.”
Crude has dropped by around a fifth since late September due to plentiful supplies and concerns about the global economic backdrop, putting pressure on the 23-nation alliance to intervene at its online meeting Thursday. The International Energy Agency warned earlier this month that markets would move back into surplus next year amid a dramatic slowdown in demand growth.
