Oil prices increased by more than $1 a barrel on Monday as investors anticipated potential actions by Opec+ producers to reduce output and boost prices at a meeting later in the day.After increasing 0.7 percent on Friday, Brent crude futures increased $1.88, or 2%, to $94.90 a barrel by 03:45 GMT. Following a 0.3 percent increase in the previous session, US West Texas Intermediate crude was trading at $88.60 per barrel, up $1.73 or 2 percent.
Due to a holiday on Monday, US markets are closed.The Organization of the Petroleum Exporting Countries (Opec) and its partners discussed these matters during their meeting later on Monday. Opec+ will likely maintain output restraint sufficient to maintain the oil price despite disruptions in demand brought on by the reintroduced lockdowns in some areas of China.
Since Russia, the second-largest oil producer in the world and an important member of Opec+, opposes a production drop at the moment, it seems likely that when the group meets on Monday, it will maintain its current output.After reaching multi-year highs in March, oil prices have dropped in the last three months due to worries that interest rate increases and Covid-19 restrictions in some parts of China.
The world’s top petroleum importer, may stifle global economic growth and reduce oil consumption.Over 65 million people live in 33 cities in China that are either completely or partially locked down at the moment.
