Crude oil surges more than 3% on rumoured OPEC+ production cut

3 Oct 2022 , 09:03 AM

As OPEC+ discusses lowering output by up to 1 million barrels per day at a meeting this week to bolster the market, oil prices increased by more than 3% in early Asian trade on Monday.

Brent crude futures recovered $2.82, or 3.3%, from their Friday low of $86.96 a barrel. U.S. West Texas Intermediate crude was trading at $82.09 a barrel, up $2.60 or 3.3% from the previous session’s loss of 2.1%.

Since June, oil prices have fallen four months in a row as COVID-19 lockdowns in China, the world’s largest crude oil consumer, reduced demand while inflation weighed on international financial markets.

Before their meeting on Wednesday, the Organization of the Petroleum Exporting Countries and its Allies, or OPEC+, are thinking about cutting their output by 0.5 million to 1 million bpd to maintain prices, according to a Reuters report.

The group lowered output by 100,000 bpd last month, marking its second straight monthly reduction.

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