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The
Saudi energy minister said OPEC+ had the means to deal with
challenges including cutting production, state news agency SPA
said on Monday, citing comments Abdulaziz bin Salman made to
Bloomberg in an interview.
Global benchmark Brent crude gained $1.32, or 1.4%, to $97.80 a
barrel by 1110 GMT. U.S. West Texas Intermediate crude rose
$1.65, or 1.8%, to $92.01.
"Whether cutting OPEC or OPEC+ output after September is
justified is debatable," said Tamas Varga of oil broker PVM.
"Despite the recent inflation-induced weakness, the oil market
seemed to have found a bottom lately."
Oil has soared in 2022, coming close in March to an all-time
high of $147 after Russia's invasion of Ukraine exacerbated
supply concerns. Concern about a global recession, rising
inflation and weaker demand has since weighed on prices.
Also in focus is the prospect of a nuclear deal between Iran and
world powers that would allow Iran to boost oil exports. A
senior U.S. official told Reuters on Monday that Iran had
dropped some of its main demands on resurrecting a deal.
While the price of Brent futures has fallen sharply from this
year's high, the market structure and price differentials in the
physical oil market still point to supply tightness.
In the comments reported on Monday, the Saudi minister said the
paper and physical oil markets had become "disconnected".
Underlining tight supply, the latest weekly reports of U.S.
inventories are expected to show a decline of 1.5 million
barrels in crude stocks. The first of this week's two reports is
out at 2030 GMT from the American Petroleum Institute. [EIA/S]
(Additional reporting by Stephanie Kelly and Muyu Xu; Editing by
Kirsten Donovan)
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