VIENNA: Oil rebounded to $66 a barrel on Tuesday as Opec+ meet to discuss oil output policy amid concern India’s coronavirus crisis could dent a recovery in fuel demand.
Opec and allies held a monitoring meeting on Tuesday instead of April 28 as planned earlier. A technical meeting on Monday had voiced concern about surging Covid-19 cases, although it kept its 2021 oil demand forecast unchanged.
Brent crude was up 32 cents, or 0.5 per cent, at $65.97 a barrel by 0915 GMT, after dropping 0.7 per cent on Monday. US oil gained 55 cents, or 0.9 per cent, to $62.46.
“Traders do not want to miss out on a potential bullish Opec+ meeting so a limited optimism is reflected in prices,” said Bjornar Tonhaugen of Rystad Energy.
“Should Opec+ turn a blind eye to India though, the gains may quickly evaporate.”
The group known as Opec+ is set to slightly ease oil output cuts from May 1, as demand further recovers from the coronavirus crisis. The easing plan was agreed before the surge in Indian cases.
India, the world’s third-largest crude importer, over the past 24 hours recorded 323,144 new cases. — Reuters