|
Brent crude futures rose $1.18 to $81.79 a barrel by 1132 GMT.
U.S. West Texas Intermediate crude was up $1.05 at $76.94.
The front-month December WTI contract expires later on Monday
while the more active January futures gained $1.15 to $77.19.
Both contracts settled 4% higher on Friday after three OPEC+
sources told Reuters that the producer group, comprising the
Organization of the Petroleum Exporting Countries(OPEC) and
allies including Russia, is set to consider whether to make
additional supply cuts when it meets on Nov. 26.
Oil prices have dropped by almost 20% since late September while
prompt inter-month spreads for Brent and WTI slipped into
contango last week. In a contango market prompt prices are lower
than those in future months, signaling sufficient supply.
"In light of last week's obliteration of oil bulls, some kind of
response was forthcoming from the (OPEC) producer group," said
Tamas Varga of oil broker PVM.
"If additional cuts are agreed, a short-term price boost is
expected, but its longer-term price impact seems dubious as
enforcement and adherence will be the salient issue."
Investors are also keeping an eye on Russian crude oil trade
after Washington imposed sanctions on three ships that have sent
Sokol crude to India.
On Friday Moscow lifted a ban on gasoline exports which could
add to global supplies of the motor fuel. That came after Russia
scrapped most restrictions on exports of diesel last month.
U.S. energy companies last week added oil and gas rigs for the
first time in three weeks, energy services business Baker Hughes
said on Friday. The oil and gas rig count serves as an early
indicator of future output.
Meanwhile, U.S. oil refiners are expected to have 264,000
barrels per day (bpd) of capacity offline for the week ending
Nov. 24, increasing available refining capacity by 559,000 bpd,
research company IIR Energy said on Monday.
In the Middle East, U.S. and Israeli officials said a deal to
free some of the hostages held in the besieged Gaza enclave was
edging closer despite fierce fighting.
(Reporting by Paul Carsten in London and Florence Tan and Emily
ChowEditing by David Goodman)
[© 2023 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
