Oil rises ahead of OPEC + meeting on production policy
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Crude prices rose, Thursday, to compensate for some of the previous session's losses, amid expectations that the meeting of OPEC and its allies later on Thursday will result in restrictions on production in the face of the outbreak of Corona virus infection in some regions.
Brent crude for June delivery rose 34 cents, or 0.53 percent, to $ 63.07 a barrel by 05:10 GMT, after falling 2.2 percent overnight. The price of US oil rose 38 cents, or 0.63 percent, to $ 59.54 a barrel, after falling 2.3 percent on Wednesday.
Ministers from the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia and Kazakhstan, a group called OPEC +, will meet later on Thursday to consider options that include extending production and gradually increasing production.
"The most likely outcome ... the meeting is not significant changes in production," the Eurasia Group said in a report on the pool.
Eurasia said: "The warning displayed in the OPEC + discussions indicates that any decisions on the tapering will likely be postponed to the May meeting," referring to the gradual supply of halting production to the market.
The cut in OPEC + oil demand growth forecast for this year by 300,000 barrels per day also affected prices and increased the likelihood that the meeting would lead to continued restraint.
OPEC + is currently limiting production by just over 7 million barrels per day to support prices and reduce oversupply. Saudi Arabia added to these cuts another million barrels per day.
The cuts came after the novel coronavirus outbreak turned into the largest global health crisis in a century and stripped demand for oil and fuel.