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Oil prices rise before Opec’s meeting about cuts in output

by Bunkerist
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Oil prices soared prior to the OPEC meeting where Saudi Arabia and its allies including Russia are expected to agree to further cut production to support the market.

Prices were also backed by lower-than-expected increases in crude oil stocks in the United States and eased oversupply concerns.

Brent crude LCOc1 rose by 46 cents, or 0.9%, to $51.58 a barrel by 0734 GMT. U.S. West Texas Intermediate (WTI) CLc1 was up 37 cents, or 0.8%, at $47.15.

The ministers of the Organization of the Petroleum Exporting Countries (OPEC) hold their official meetings on Thursday, then to be followed by a meeting of the wider OPEC + group, including Russia, on Friday.

Geopolitical tensions in the Middle East also raised prices. There are rumors that an oil tanker was attacked on the shores of the Arabian Sea while the Saudi-led coalition war in Yemen continues.

However, in addition to concerns about the increase in demand, the head of the International Monetary Fund said that the increasing global spread of the virus has blunted hopes for stronger economic gain this year.

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