Oil prices rise over supply cut fears
PremiumOpec+ is scheduled to meet on Wednesday and is likely to discuss production cut of over 1 million barrels per day.
New Delhi: Global crude oil prices rose on Tuesday ahead of the meeting of OPEC+ which is expected to consider further output cuts.
The alliance of the Organization of the Petroleum Exporting Countries (OPEC) and other major oil producing countries including Russia is scheduled to meet on Wednesday and is likely to discuss production cut of over 1 million barrels per day. If implemented, it would be the biggest output cut since the start of the pandemic in 2020.
The development comes amid a fall in prices since June due to prospects of a global recession amid weakening demand and rising interest rates.
Around 11.55 pm, the December contract of Brent on the Intercontinental Exchange was at $89.43 per barrel, higher by 0.64% from its previous close. The November contract of West Texas Intermediate (WTI) on the NYMEX rose 0.50% to $84.05 a barrel.
Sriram Iyer, senior research analyst at Reliance Securities said: “OPEC+ is considering decreasing output by more than 1 million bpd to support prices. This figure does not include additional voluntary cuts by individual members."
Last month, OPEC announced that OPEC+ would slash oil production targets for October by 100,000 barrels per day after the cartel agreed to increase the production by the same quantum in September.
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Despite the decline in crude prices, the retail prices of petrol and diesel in India have largely remained unchanged. In the national capital, petrol is sold at ₹96.72 per litre, while diesel is priced at ₹89.62 a litre.
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