Oil prices rise on hopes of OPEC+ supply curb
Oil prices rose on Monday, recovering last session’s losses as hopes that OPEC and its allies will maintain existing output cuts, thus offsetting worries about weak fuel demand. This came amid the resurgence of global coronavirus cases and rising production from Libya.
Brent crude futures for January climbed 1%, or 44 cents, at $43.22 per barrel. U.S. West Texas Intermediate crude for December delivery rose 1.4%, or 54 cents, at $40.67 per barrel.
Both benchmarks climbed over 8% last week on hopes for a COVID-19 vaccine and that OPEC+ will hold onto current output cuts until next year.
OPEC+ has been slashing output by 7.7 million bpd with a 101% compliance rate in October. However, the organization is planning to increase production by 2 million bpd from January.
The ministerial committee of OPEC+ is set to meet on Tuesday to assess the need for changes in production quotas.
However, rising production from Libya posed a challenge to the cuts, while a slowdown in traffic across the United States and Europe weighed on fuel demand recovery hopes.