Oil prices up ahead of OPEC+ meeting

Oil prices up ahead of OPEC+ meeting

Oil prices increased on Monday ahead of an OPEC+ meeting, as the world’s biggest oil producers are expected to keep the production quota in February unchanged amid weak oil demand caused by the global pandemic crisis.

International benchmark Brent crude was trading at $53 per barrel at 0646 GMT, the highest rate since March 5 when it traded at $52.04, and compared to Thursday marked an increase of 2.32% after closing at $51.80 a barrel.

American benchmark West Texas Intermediate (WTI) was at $49.52 per barrel at the same time for a 2.06% increase after it ended the previous session at $48.52 a barrel.

Investors are waiting for the outcome of the Jan. 4 meeting of the Organization of the Petroleum Exporting Countries (OPEC) and allies, including Russia, a group known as OPEC+. The group is expected to review the markets and then decide on production cuts for the following month.

OPEC+ agreed to bring the total production cut down to 7.2 million barrels per day (bpd) in January. The group will then meet monthly to assess market conditions and decide on further production adjustments for the following month, which will be capped at 500,000 bpd.