On Monday, oil prices increased by more than $2 per barrel, extending gains after OPEC+ members decided to lower output by 100,000 BPD in October, a source said. By 7:24 a.m. ET, November delivery Brent crude futures were up $3.57 to $96.59 a barrel, or 3.8%. (12:24 GMT). After rising by 0.3% the previous day, U.S. West Texas Intermediate crude was up $2.13, or 2.5%, at $89 per barrel.
Due to a public holiday, American markets are closed on Monday. An OPEC and non-OPEC ministerial meeting might be called at any moment to discuss market developments, according to the head of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, also known as OPEC+.
OPEC+ will meet again on October 5, according to a source. According to the Wall Street Journal on Sunday, which cited anonymous sources, Russia, the second-largest oil producer in the world and a significant member of OPEC+, does not now favor a production cut, and the producer group is likely to vote to maintain output.
As a result of worries that interest rate hikes and COVID-19 restrictions in some regions of China will impede global economic development and reduce oil consumption, oil prices have declined in the past three months from multi-year highs reached in March. Lockdown restrictions in Shenzhen, the southernmost technological powerhouse of China, were loosened on Monday as new illnesses appeared to be stabilizing, while the city is still under watch.
While this is going on, discussions to resurrect the 2015 nuclear agreement between the West and Iran have run into a fresh roadblock. This may potentially raise supply when Iranian crude returns to the market. A Western diplomat claimed that the White House rejected Iran’s demand that the conclusion of U.N. nuclear watchdog investigations be tied to any agreement.
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