Global oil prices witnessed a rise in Asian trading during trading on Tuesday, amid expectations that OPEC + will make a significant reduction in crude production at its expected meeting tomorrow, Wednesday.
Despite the rise in global oil prices, concerns about the global economy limited crude's gains.
Brent crude futures rose 39 cents, or 0.44%, to $89.25 a barrel by 5:03 a.m. GMT, after gaining more than 4% in the previous session.
US crude futures also rose 20 cents, or 0.24%, to $83.83 a barrel. It had risen more than 5% in the previous session, recording its largest daily gain since last May.
Oil prices rose on Monday on renewed concerns about tight supply. There are expectations that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, will cut production by more than one million barrels per day in their first in-person meeting since 2020 on Wednesday.
OPEC sources said voluntary cuts by members could come on top of that, making it the biggest cut since the start of the COVID-19 pandemic, CNBC Arabia reported.
Despite everything going on with the war in Ukraine, (OPEC+) has never been this strong and will do whatever it takes to make sure prices are supported,” Edward Moya, a senior analyst at OANDA, said in a note.
OPEC+ boosted production this year after record cuts in 2020 due to the demand hit caused by the Corona pandemic. But the organization failed in the past few months to meet the planned increases in production, which it did not achieve in July, by 2.9 million barrels per day.
Oil prices have fallen for four consecutive months as the COVID-19 shutdown in China, the largest oil importer, curbed demand while higher interest rates and a stronger dollar put pressure on global financial markets.
