Oil prices inch up ahead of OPEC+ meeting on extended output cuts

Oil prices inch up ahead of OPEC+ meeting on extended output cuts
  • Clock-gray 07:16
  • calendar-gray 02 June 2020

Oil prices crawled higher on Tuesday, with traders waiting to see whether major producers agree to extend their huge output cuts to shore up prices at a meeting expected later this week, APA reports quoting Reuters.

Brent crude LCOc1 futures rose 0.4%, or 17 cents, to $38.49 a barrel as of 0220 GMT. 

West Texas Intermediate (WTI) crude CLc1 futures traded in a 38-cent range on either side of Monday’s close, and last traded unchanged at $35.44 a barrel. 

Brent has doubled over the past six weeks, thanks to supply cuts by the Organization of the Petroleum Exporting Countries and allies, including Russia, a grouping dubbed OPEC+. 

Both Brent and WTI prices are still down about 40% for the year so far. 

OPEC+ producers are considering extending their output cut of 9.7 million barrels per day (bpd), about 10% of global production, into July or August, at an online meeting likely to be held on June 4. 

Under the OPEC+ plan agreed in April, the record supply cut was to be for May and June, scaling back to a cut of 7.7 million bpd from July through December. Saudi Arabia has been leading talks to push for extending the heftier cuts, sources told Reuters last week.

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