Global oil prices rose on Monday as traders expected top exporter Saudi Arabia to push producer club OPEC to cut supply toward year-end.
However, despite that, markets remained wary amid deep trade disputes between the world’s two biggest economies, the United States and China. Front-month Brent crude oil futures LCOc1 were at $67.21 per barrel at 0609 GMT, up 45 cents, or 0.7 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures CLc1, were up 58 cents, or 1 percent, at $57.04 per barrel.
“Oil prices continued to recover…(as) the market will be watching closely for the possible impact of a (supply) cut.” said Sukrit Vijayakar, director of Indian energy consultancy Trifecta.
The Organization of the Petroleum Exporting Countries (OPEC), de facto led by Saudi Arabia, is pushing for the producer cartel and its allies to cut 1 million to 1.4 million barrels per day (bpd) of supply to adjust for a slowdown in demand growth and prevent oversupply.
Despite Monday’s gains, crude prices remain almost a quarter below their recent peaks in early October, weighed down by surging supply and a slowdown in demand growth.
