The probable decision to extend the production cuts to be taken by major crude oil producer countries at a video conference meeting is expected this week. Growing amount of countries, and the states in U.S. began to reopen after coronavirus lockdowns, and oil rose more than $ 1 a barrel on Tuesday.
Brent crude LCOc1 settled at $39.57 a barrel, rising $1.25, or 3.3%. West Texas Intermediate crude (WTI) CLc1 settled at $36.81 a barrel, jumping $1.37, or 3.9%.
Both criteria approached the highest levels in three weeks.
There is a belief that OPEC + will agree to extend its current levels for two more months. At the same time, the market predicts that the reopening of the world’s economies will increase demand and the oil market will be stable until August.
The organization, known as the Petroleum Exporting Countries and OPEC +, is considering extending 9.7 million barrels (bpd) per day or about 10% of global production by July, including Russia. The meeting is expected on Thursday.
Saudi Arabia is pushing for deeper production cuts to take longer.
After the restrictions caused by the coronavirus pandemic, the gradual reopening of businesses in an increasing number of US states helps to increase fuel demand and oil prices.
According to estimates, US crude oil stocks fell by 483,000 barrels in the week of May 29, falling to 531 million barrels.
Official data is released on Wednesday.