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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Oil prices climb ahead of OPEC meeting to discuss supply cuts

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SINGAPORE: Oil prices climbed higher on Thursday ahead of an OPEC meeting in which Saudi Arabia is expected to push the group and its allies including Russia to agree to further output cuts to support the market.


Prices were also supported by a lower-than-expected rise in crude oil inventories in the United States, alleviating some concerns of oversupply in the world’s biggest oil consumer.


Brent crude LCOc1 rose by 46 cents, or 0.9 per cent, to $51.58 per barrel by 0734 GMT, while US West Texas Intermediate (WTI) CLc1 was up by 37 cents, or 0.8 per cent, at $47.15 per barrel.


“Crude oil prices were boosted by a broad positive sentiment overnight, and a much lower-than-expected ... crude oil inventory data,” said Margaret Yang, a market analyst at CMC Markets.


“(The) market is also anticipating a decent output cut to be carried out by OPEC+, as Covid-19 has brought a significant impact to world’s energy demand. More production curb is needed to shore up crude prices.”


US crude stocks rose modestly last week, less than what analysts had expected, while US oil exports surged to more than 4 million barrels per day (bpd) for the first time since December, suggesting a rise in overseas demand. [EIA/S]


Ministers of the Organization of the Petroleum Exporting Countries (OPEC) hold their formal meeting later on Thursday, followed by a meeting of the broader OPEC+ group including Russia on Friday.


Saudi Arabia and other OPEC members are seeking to win support from Russia to join them in additional oil output cuts to prop up prices that have tumbled by a fifth this year because of the global spread of the coronavirus outbreak.— Reuters


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