Houston: Brent and US crude futures witnessed a significant surge of more than 2.5% on Monday, driven by expectations of additional supply cuts within the OPEC+ alliance. The anticipation arises ahead of a meeting scheduled for early next week among member countries, where further production adjustments are expected to be announced.
At 12:15 pm CST (1815 GMT), Brent crude futures recorded an increase of $2.19, reaching $82.80 per barrel. Simultaneously, US West Texas Intermediate crude rose by $2.13, or 2.81%, reaching $78.02. The front-month December WTI contract is set to expire later in the day, with the more active January futures gaining $2.39 to $78.34, marking a 3.02% increase.
This surge follows a 4% rise in both contracts on Friday, driven by information from three OPEC+ sources that the producer group is contemplating additional supply cuts. The decision on potential adjustments is expected to be a focal point during the OPEC+ meeting scheduled for November 26.
The oil market continues to be influenced by discussions and decisions within the OPEC+ alliance, reflecting the delicate balance between global supply and demand. As the meeting approaches, market participants remain attentive to any developments that might impact oil prices.
By Reuters
