Oil Prices Extend Gains as OPEC Considers More Cuts
C rude prices were rising early Monday, extending gains from the end of last week.
The increases follow a report in the Financial Times saying Saudi Arabia will prolong voluntary output restrictions into next year, while the rest of the Organization of the Petroleum Exporting Countries (OPEC) is considering further cuts.
Prices had dropped to a four-month low on Thursday and notched a fourth week of declines last week. The reasons for that include concern that global energy demand may be weakening along with the economy, as well as relief that the latest war in the Middle East hadn’t spread to directly involve oil-producing countries such as Saudi Arabia or Iran. Inventories have also been building up in storage facilities in Cushing, Okla.
Sentiment may now be shifting. OPEC members were reported to not only be worried about declining prices, but also unhappy with the Israel-Hamas war and humanitarian conditions in Gaza, the FT said, citing unidentified people familiar with the discussions.
Brent crude, the international benchmark, was up 0.8% at $81.22 early Monday. West Texas Intermediate, the U.S. standard, also rose 0.8% to $76.53.
The next OPEC meeting is scheduled for Nov. 26 in Vienna.