New Delhi: Global crude oil prices rose on Tuesday ahead of the OPEC+ meeting, which is expected to consider further cuts in production.
The Organization of the Petroleum Exporting Countries (OPEC) and a coalition of other major oil producing countries, including Russia, are due to meet on Wednesday and are likely to discuss production cuts of more than 1 million barrels per day. If implemented, it would be the biggest production cut since the start of the pandemic in 2020.
The development comes amid a fall in prices since June on prospects of a global recession amid weak demand and rising interest rates.
At around 11.55 a.m., Brent’s December contract on the Intercontinental Exchange was at $89.43 a barrel, up 0.64% from its previous close. West Texas Intermediate (WTI) November contract rose 0.50% to $84.05 a barrel on the NYMEX.
Sriram Iyer, senior research analyst at Reliance Securities, said: “OPEC+ is looking to cut production by more than 1 million bpd to support prices. This figure does not include additional voluntary cuts by individual members.”
Last month, OPEC announced that OPEC+ would slash its oil production target for October by 100,000 barrels per day after the cartel agreed to increase production by the same amount in September.
Despite the fall in crude oil prices, the retail prices of petrol and diesel in India have remained largely unchanged. Petrol in the national capital is sold at 96.72 per liter, while the price of diesel is 89.62 per liter.
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