News

Oil jumps as OPEC+ mulls biggest production cut since pandemic

OIL surged in early Asian trading after delegates said OPEC+ was considering cutting output by more than 1 million barrels a day when the group meets this week to stem a slide in prices.

West Texas Intermediate futures jumped more than 3%, advancing for the first time in three sessions. While delegates said a final decision on the size of the cuts won’t be made until ministers meet in Vienna on Wednesday, a reduction of that magnitude would be the biggest since the pandemic.

Crude capped its first quarterly decline in more than two years on Friday as concerns over a global economic slowdown weigh on the outlook for energy demand. Banks including JPMorgan Chase & Co. said recently that OPEC+ may need to lower output by least 500,000 barrels a day to stabilize prices.

A huge output cut may draw criticism from the US and other major consumers, which have been battling energy-driven inflation as well as the slowdown. The Organization of Petroleum Exporting Countries and its allies plan to hold their first in-person meeting in Vienna since March 2020.

Prices
  • WTI for November delivery rose 3.2% to $82.03 a barrel on the New York Mercantile Exchange at 6:50 a.m. in Singapore.
    • Futures tumbled 25% in the last quarter.
  • Brent for December settlement gained 3.2% to $87.89 a barrel on the ICE Futures Europe exchange.

China last week issued new quotas for fuel exports and crude imports as it seeks to revive its economy, adding to bullish sentiment for the outlook for oil demand. The world’s biggest crude importer has been hit by Covid lockdowns and a property slump this year. – BLOOMBERG

Dayang Norazhar

Recent Posts

C4 calls for ‘transparent’ probe on PN govt’s spending

The current administration must ensure the progress reports is publicly available and accessible, and provide…

6 hours ago

Labor shortage to cost Malaysia palm oil sector RM20b

A chronic shortage of plantation workers in Malaysia may cost palm oil producers about RM20…

7 hours ago

Saudi Arabia says China’s Xi to visit this week

Saudi Arabia said Chinese President Xi Jinping (picture) will visit the kingdom from Wednesday for a…

7 hours ago

Bosnia may be granted EU candidacy status as early as next week

European Union leaders may grant Bosnia-Herzegovina official candidacy status as early as Dec. 15’s summit…

7 hours ago

What does world economy look like through 2075? Here’s what Goldman Sachs thinks

Goldman Sachs Group Inc. economists have taken a stab at predicting the path of the…

7 hours ago

Key ASIC wins 2 contracts worth over RM26m

KEY ASIC Bhd has bagged two application specific integrated circuit (ASIC) contracts worth over RM26 million…

7 hours ago